Google Project Oxygen 2 Case Study Solution and Analysis
Introduction
Google Project Oxygen 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 consisting of; gathering information, processing information and interaction services. Major business sectors of the company include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports etc. Google Project Oxygen 2 Case Study Solution has become a specialized info supplier and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and Google Project Oxygen 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Google Project Oxygen 2 Case Study Solution has specific strengths that can be used to lower the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Google Project Oxygen 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Google Project Oxygen 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Google Project Oxygen 2 Case Study Solution too, but the development might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has presented certain threats to Google Project Oxygen 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Google Project Oxygen 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall profits of Google Project Oxygen 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a large number of customers at a potential price.
Together with it, the second graph which shows the yearly growth in the Google Project Oxygen 2 Case Study Analysis total possessions, reveals that the company is rather effective in adding value to its properties through its revenues. The development in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis relating to the circulation of overall revenues of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Google Project Oxygen 2 Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the general business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful 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 Google Project Oxygen 2 Case Study Solution. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Google Project Oxygen 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Google Project Oxygen 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Google Project Oxygen 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks second and third in different market sectors, with a significant concentrate on educational publications. CIP functions 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 Google Project Oxygen 2 Case Study Analysis quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Google Project Oxygen 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing 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 sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the declining market development. Introduction of digital publishing could prove to be an instant service with low amount of danger for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially collects the information connected to the consumer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the company needs to decide one possible sector for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' items. The steps above the business ought to go for the preliminary offering. If the initial offering proves a success, the company must opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a hazard to the company's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
