Facebook 2013 Will Wall Street Hit The Like Button Case Study Solution and Analysis
Introduction
Facebook 2013 Will Wall Street Hit The Like Button Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Facebook 2013 Will Wall Street Hit The Like Button Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Facebook 2013 Will Wall Street Hit The Like Button Case Study Help has specific strengths that can be used to minimize the threats, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Facebook 2013 Will Wall Street Hit The Like Button Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position permits the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Facebook 2013 Will Wall Street Hit The Like Button Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Facebook 2013 Will Wall Street Hit The Like Button Case Study Solution as well, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned specific hazards to Facebook 2013 Will Wall Street Hit The Like Button Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Facebook 2013 Will Wall Street Hit The Like Button Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total profits of Facebook 2013 Will Wall Street Hit The Like Button Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in attracting a large number of consumers at a prospective rate.
In addition to it, the second graph which reveals the yearly development in the Facebook 2013 Will Wall Street Hit The Like Button Case Study Help overall assets, shows that the business is quite effective in including value to its properties through its profits. The development in properties shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis concerning the circulation of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Facebook 2013 Will Wall Street Hit The Like Button Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Facebook 2013 Will Wall Street Hit The Like Button Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Facebook 2013 Will Wall Street Hit The Like Button Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in various market sectors, with a major concentrate on educational publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Facebook 2013 Will Wall Street Hit The Like Button Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Facebook 2013 Will Wall Street Hit The Like Button Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining market development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of threat for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should first gathers the data connected to the customer need, the potential markets, the government regulations and the information related to the competitors provided in the market. After that, the company should decide one possible segment for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business should go for the initial offering. If the preliminary offering proves a success, the business should choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a threat to the business's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
