From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Solution and Analysis
Intro
From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis has certain strengths that can be used to reduce the hazards, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the business to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help are provided 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 highly relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help as well, however the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods 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 consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total incomes of From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather effective in attracting a big number of consumers at a possible cost.
Along with it, the 2nd chart which shows the annual development in the From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis total assets, shows that the company is rather efficient in including value to its assets through its profits. The growth in assets reveals that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis relating to the circulation of overall revenues of the company. 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 service segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn 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 company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books impact the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies 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 ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers 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 entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market 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 From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sections, with a major focus on academic publications. CIP serves as a risk 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 From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as From Hand Helds To Smart Phones The Pioneers Of Palm Inc Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry growth. Intro of digital publishing could show to be an instant service with low quantity of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the data related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a threat to the company's long term existence, however the situation can be managed by considering 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 prevent the danger of failure for entryway in the brand-new markets.
