Good Year Tire And Rubber Company 2 Case Study Solution and Analysis
Introduction
Good Year Tire And Rubber Company 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become 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.
Crucial Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Good Year Tire And Rubber Company 2 Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Good Year Tire And Rubber Company 2 Case Study Analysis has particular strengths that can be used to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Good Year Tire And Rubber Company 2 Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the company to consider several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Good Year Tire And Rubber Company 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Good Year Tire And Rubber Company 2 Case Study Help as well, but the growth could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to Good Year Tire And Rubber Company 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Good Year Tire And Rubber Company 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be determined. The general financial efficiency of the business might be analyzed by utilizing the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Good Year Tire And Rubber Company 2 Case Study Help is growing and the company is quite efficient in drawing in a large number of consumers at a possible price.
Together with it, the second chart which reveals the annual development in the Good Year Tire And Rubber Company 2 Case Study Solution overall possessions, shows that the business is quite efficient in including value to its assets through its profits. The growth in possessions shows that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of overall revenues 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 could move towards other service sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the current patterns 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 might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products etc. China has the greatest population in the world with a high population development, showing the increasing number of consumers of the Good Year Tire And Rubber Company 2 Case Study Analysis. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Good Year Tire And Rubber Company 2 Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the documents presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Good Year Tire And Rubber Company 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence 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 competitors of Good Year Tire And Rubber Company 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a major focus on instructional publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Good Year Tire And Rubber Company 2 Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the 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 a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
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 business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing market growth. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information associated with the customer demand, the prospective markets, the federal government policies and the information associated with the rivals provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business should go for the preliminary offering. If the initial offering proves a success, the company must opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a hazard to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
