Fashion In Digital Age Case Study Solution and Analysis
Intro
Fashion In Digital Age Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing information and interaction services. Significant organisation segments of the business consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Fashion In Digital Age Case Study Solution has actually become a specialized information provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Fashion In Digital Age Case Study Solution in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fashion In Digital Age Case Study Analysis has particular strengths that can be utilized to minimize the threats, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Fashion In Digital Age Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restraints for the business in executing its advancement program. The weaknesses of Fashion In Digital Age Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, impacting Fashion In Digital Age Case Study Solution as well, however the development could be restored by availing certain chances provided in the market. The market chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured certain hazards to Fashion In Digital Age Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Fashion In Digital Age Case Study Analysis due to the consumer 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 rivals can get a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total incomes of Fashion In Digital Age Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible rate.
In addition to it, the 2nd graph which reveals the yearly development in the Fashion In Digital Age Case Study Solution total possessions, shows that the business is quite effective in including worth to its possessions through its earnings. The growth in assets shows that the total value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis relating to the distribution of overall revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Fashion In Digital Age Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Fashion In Digital Age Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books impact the general service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Fashion In Digital Age Case Study Solution. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Fashion In Digital Age Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Fashion In Digital Age Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Fashion In Digital Age Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP publishes comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major focus on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Fashion In Digital Age Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service 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 internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining market development. For that reason, intro of digital publishing might show to be an instant option with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially collects the information related to the customer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a risk to the company's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
