Google Project Oxygen Case Study Solution and Analysis
Google Project Oxygen Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Google Project Oxygen Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Google Project Oxygen Case Study Solution has particular strengths that can be utilized to decrease the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Google Project Oxygen Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the company to consider several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Google Project Oxygen Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is decreasing given that 2008, affecting Google Project Oxygen Case Study Solution as well, however the development might be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Google Project Oxygen Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Google Project Oxygen Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number 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 customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the threat of losing the customer base.
Due to absence of information, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly total profits of Google Project Oxygen Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a big number of clients at a possible price.
Together with it, the second graph which reveals the yearly growth in the Google Project Oxygen Case Study Help total possessions, reveals that the company is quite efficient in including worth to its assets through its incomes. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis regarding the distribution of total revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future advancement objective.
PESTEL analysis might be carried out to learn the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology together with the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting Google Project Oxygen Case Study Solution consists of the concerns of environmental communities 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 should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Google Project Oxygen Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
CMP runs in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Google Project Oxygen Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a significant focus on academic publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Google Project Oxygen Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Google Project Oxygen Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining market development. Intro of digital publishing might prove to be an instant option with low quantity of threat for the company. The business could likewise consider 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 initially collects the data related to the customer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.