Good Year Tire And Rubber Company Case Study Solution and Analysis
Good Year Tire And Rubber Company Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and communication services. Significant company sections of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. Good Year Tire And Rubber Company Case Study Analysis has ended up being a specialized information service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Good Year Tire And Rubber Company Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Good Year Tire And Rubber Company Case Study Analysis has certain strengths that can be used to reduce the risks, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Good Year Tire And Rubber Company Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the business to consider several advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has particular weak points which might increase constraints for the company in implementing its development program. The weaknesses of Good Year Tire And Rubber Company Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is decreasing since 2008, impacting Good Year Tire And Rubber Company Case Study Solution also, however the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular hazards to Good Year Tire And Rubber Company Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Good Year Tire And Rubber Company Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the consumer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be computed. Nevertheless, the general monetary efficiency of the company could be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Good Year Tire And Rubber Company Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the annual growth in the Good Year Tire And Rubber Company Case Study Help overall possessions, shows that the company is rather efficient in adding value to its properties through its revenues. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis concerning the circulation of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a prospective development to attain its future development objective.
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out helpful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Good Year Tire And Rubber Company Case Study Help. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Good Year Tire And Rubber Company Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Good Year Tire And Rubber Company Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of rivals. The business 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 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might 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 current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Good Year Tire And Rubber Company Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first collects the data related to the customer need, the possible markets, the federal government policies and the data connected to the competitors provided in the market. After that, the business needs to choose one possible section for its preliminary offering. It must gather research study that how it might separate its digital publishing from the existing competitors' products. The actions above the company ought to go for the initial offering. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the development of the publishing market is decreasing because 2008, showing a danger to the business's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.