Fitbit Case Study Solution and Analysis
Fitbit Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Fitbit Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several 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 used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Fitbit Case Study Help has certain strengths that can be used to minimize the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Fitbit Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the business to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Fitbit Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is decreasing because 2008, impacting Fitbit Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular risks to Fitbit Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Fitbit Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total incomes of Fitbit Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in bring in a large number of customers at a possible rate.
Along with it, the second graph which shows the annual development in the Fitbit Case Study Analysis overall properties, reveals that the business is quite efficient in including worth to its properties through its revenues. The development in possessions shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis concerning the distribution of overall revenues of the company. Major 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 company might move towards other company segments with a potential development to accomplish its future development goal.
PESTEL analysis could be conducted to find out the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful materials and so on. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Fitbit Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Fitbit Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter 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 documents presented in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the danger of alternative for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Fitbit Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Fitbit Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Fitbit Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the declining market growth. For that reason, introduction of digital publishing might prove to be an immediate option with low quantity of risk for the business. The company might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first gathers the data related to the customer need, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a risk to the company's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.