Flying Cars Case Study Solution and Analysis
Introduction
Flying Cars Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and Flying Cars Case Study Help in particular. These elements consist of;
• Entrance 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 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Flying Cars Case Study Help has specific strengths that can be utilized to reduce the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Flying Cars Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weak points of Flying Cars Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Flying Cars Case Study Analysis as well, but the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually postured certain dangers to Flying Cars Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Flying Cars Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall earnings of Flying Cars Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a prospective cost.
Together with it, the second chart which reveals the yearly development in the Flying Cars Case Study Analysis total possessions, shows that the business is rather efficient in adding value to its properties through its revenues. The development in possessions shows that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the circulation of total earnings of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short 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 the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Flying Cars Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general 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 integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials etc. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the Flying Cars Case Study Analysis. However, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Flying Cars Case Study Solution consists of the issues of ecological 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 must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Flying Cars Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Flying Cars Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a major concentrate on instructional publications. CIP serves as a threat 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 Flying Cars Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining market development. Introduction of digital publishing might prove to be an immediate solution with low amount of threat for the business. However, the company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first gathers the information connected to the consumer need, the prospective markets, the government policies and the data associated with the competitors presented in the market. After that, the company must decide one possible section for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing competitors' products. The steps above the business must go for the preliminary offering. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
