Good Year Tire And Rubber Company 2 Case Study Solution and Analysis
Good Year Tire And Rubber Company 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Good Year Tire And Rubber Company 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Good Year Tire And Rubber Company 2 Case Study Analysis has particular strengths that can be used to reduce the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Good Year Tire And Rubber Company 2 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position enables the company to think about numerous advancement opportunities with no fear of raising fund externally.
Along with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its development program. The weak points of Good Year Tire And Rubber Company 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing considering that 2008, impacting Good Year Tire And Rubber Company 2 Case Study Analysis too, but the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually presented particular risks to Good Year Tire And Rubber Company 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Good Year Tire And Rubber Company 2 Case Study Help 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 acquire a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the risk of losing the consumer base.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall earnings of Good Year Tire And Rubber Company 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in drawing in a big number of consumers at a prospective cost.
In addition to it, the second chart which reveals the annual growth in the Good Year Tire And Rubber Company 2 Case Study Solution total possessions, shows that the business is rather effective in including worth to its possessions through its revenues. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the circulation of total earnings of the business. Huge 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 business segments with a potential development to attain its future development goal.
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Good Year Tire And Rubber Company 2 Case Study Help organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Good Year Tire And Rubber Company 2 Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Good Year Tire And Rubber Company 2 Case Study Solution consists of the issues of ecological neighborhoods 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 needs to not be harmful for the environment.
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 Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Good Year Tire And Rubber Company 2 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Good Year Tire And Rubber Company 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sections, with a major focus on academic publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Good Year Tire And Rubber Company 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Good Year Tire And Rubber Company 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
As the choices are moving towards digital publishing and the business require an immediate solution to avoid the declining industry growth. The business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially gathers the data related to the consumer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, revealing a threat to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.