Flip Factory Case Study Solution and Analysis
Flip Factory Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Flip Factory Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Flip Factory Case Study Help has specific strengths that can be utilized to decrease the risks, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Flip Factory Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position allows the business to think about several advancement chances with no worry of raising fund externally.
In addition to the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Flip Factory Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing market is decreasing since 2008, impacting Flip Factory Case Study Solution as well, but the growth might be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed certain dangers to Flip Factory Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Flip Factory Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the threat of losing the customer base.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. Nevertheless, the general financial efficiency of the business might be examined by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Flip Factory Case Study Analysis is growing and the company is quite efficient in bring in a large number of clients at a prospective cost.
In addition to it, the 2nd chart which shows the yearly growth in the Flip Factory Case Study Help overall properties, reveals that the company is quite efficient in including worth to its properties through its incomes. The growth in assets shows that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the circulation of overall revenues of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sections with a possible development to accomplish its future development goal.
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Flip Factory Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the total service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces affecting Flip Factory Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Flip Factory Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
CMP operates 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 greatest market share in the Chinese publishing market. Major rivals of Flip Factory Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in various market segments, with a significant focus on educational publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Flip Factory Case Study Analysis quickly in the existing market situation.
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 6th in the state-owned publishers in regards to service scale. It is likewise among the popular gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing market growth. For that reason, introduction of digital publishing could prove to be an immediate option with low amount of threat for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the data related to the consumer demand, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term existence, but the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.