Google Car 2 Case Study Solution and Analysis
Intro
Google Car 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing info and communication services. Significant business sectors of the company include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibits, research study reports etc. Google Car 2 Case Study Analysis has actually ended up being a specialized details service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Google Car 2 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Google Car 2 Case Study Analysis has certain strengths that can be made use of to decrease the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Google Car 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the company in executing its development program. The weak points of Google Car 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Google Car 2 Case Study Analysis as well, but the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned certain dangers to Google Car 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Google Car 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. Nevertheless, the overall financial performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Google Car 2 Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of clients at a possible price.
Along with it, the 2nd graph which reveals the yearly development in the Google Car 2 Case Study Analysis total assets, reveals that the business is quite efficient in including value to its properties through its earnings. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting Google Car 2 Case Study Solution company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Google Car 2 Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials and so on. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Google Car 2 Case Study Analysis. However, the customer choices are moving towards digital publishing instead of 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 development in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Google Car 2 Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition 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. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Google Car 2 Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Google Car 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 service sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing market development. Intro of digital publishing might prove to be an immediate solution with low quantity of danger for the company. Nevertheless, the company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data related to the consumer demand, the prospective markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
