Flip Factory Case Study Solution and Analysis
Intro
Flip Factory Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and communication services. Major company sections of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Flip Factory Case Study Solution has ended up being a specialized info company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Flip Factory Case Study Analysis in particular. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions 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 capabilities of the company could be made use of 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
Flip Factory Case Study Solution has specific strengths that can be made use of to decrease the dangers, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Flip Factory Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position allows the business to consider a number of development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Flip Factory Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Flip Factory Case Study Help as well, but the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain dangers to Flip Factory Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Flip Factory Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total revenues of Flip Factory Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a possible cost.
Along with it, the second graph which reveals the annual growth in the Flip Factory Case Study Help total assets, shows that the business is rather efficient in including value to its properties through its earnings. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the circulation of total revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out helpful products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Flip Factory Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Flip Factory Case Study Solution includes 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 disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Flip Factory Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Flip Factory Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Flip Factory Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market growth. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially gathers the information related to the customer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a hazard to the business's long term existence, but the situation can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
