Good Year Tire And Rubber Company Case Study Solution and Analysis
Intro
Good Year Tire And Rubber Company Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Good Year Tire And Rubber Company Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Good Year Tire And Rubber Company Case Study Analysis has particular strengths that can be utilized to decrease the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Good Year Tire And Rubber Company Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the business to think about a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Good Year Tire And Rubber Company Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Good Year Tire And Rubber Company Case Study Help also, however the growth might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has postured specific threats to Good Year Tire And Rubber Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Good Year Tire And Rubber Company Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. The overall financial performance of the company might be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Good Year Tire And Rubber Company Case Study Analysis is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
Together with it, the 2nd graph which shows the annual growth in the Good Year Tire And Rubber Company Case Study Solution total possessions, reveals that the business is rather efficient in adding worth to its properties through its profits. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Good Year Tire And Rubber Company Case Study Help company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Good Year Tire And Rubber Company Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the overall business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Good Year Tire And Rubber Company Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Good Year Tire And Rubber Company Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
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 gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk 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. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Good Year Tire And Rubber Company Case Study Help include the providers 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Good Year Tire And Rubber Company Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Good Year Tire And Rubber Company Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to prevent the declining market development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first gathers the information related to the customer need, the prospective markets, the government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.
