Google 2 Case Study Solution and Analysis
Introduction
Google 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 information service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and Google 2 Case Study Help in particular. These elements 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 technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Google 2 Case Study Help has specific strengths that can be used to decrease the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Google 2 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the business to think about several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restrictions for the company in executing its development program. The weaknesses of Google 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Google 2 Case Study Analysis also, but the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has posed particular threats to Google 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Google 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market 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. However, the overall monetary performance of the business might be examined by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Google 2 Case Study Analysis is growing and the company is quite effective in bring in a a great deal of clients at a prospective rate.
Together with it, the 2nd graph which reveals the yearly growth in the Google 2 Case Study Solution overall properties, shows that the company is rather efficient in including worth to its properties through its profits. The development in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the distribution 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 shown in the Case Appendix V. The company might move towards other company segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Google 2 Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Google 2 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number 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, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Google 2 Case Study Analysis consist of the providers of the paper for publishing documents. 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.
Negotiating power of buyer 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 needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Google 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market segments, with a major concentrate on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Google 2 Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Google 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the declining market growth. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially collects the information related to the consumer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
