Fitbit Case Study Solution and Analysis
Intro
Fitbit Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing info and interaction services. Major service sectors of the company consist of; books, regulars, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports etc. Fitbit Case Study Help has become a specialized info company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Fitbit Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement 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 scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fitbit Case Study Solution has specific strengths that can be utilized to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Fitbit Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position enables the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Fitbit Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Fitbit Case Study Analysis as well, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific dangers to Fitbit Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Fitbit Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors 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 utilizing particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall monetary efficiency of the company might be analyzed by using the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Fitbit Case Study Help is growing and the business is quite effective in drawing in a a great deal of clients at a potential cost.
In addition to it, the 2nd chart which reveals the annual development in the Fitbit Case Study Solution total properties, reveals that the company is rather efficient in including value to its properties through its profits. The growth in properties shows that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the distribution of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Fitbit Case Study Help includes the concerns of environmental neighborhoods 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Fitbit Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Fitbit Case Study Help consist of;.
• Chemical Market 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the declining industry development. Intro of digital publishing might prove to be an instant solution with low quantity of risk for the company. Nevertheless, the company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information associated with the customer need, the possible markets, the government guidelines and the data connected to the rivals provided in the market. After that, the company should decide one prospective section for its preliminary offering. It ought to collect research that how it might differentiate its digital publishing from the existing rivals' products. After all the actions above the business must choose the preliminary offering. If the initial offering shows a success, the business should opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
