Gps To Go Takes On Garmin Case Study Solution and Analysis
Introduction
Gps To Go Takes On Garmin Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Gps To Go Takes On Garmin Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Gps To Go Takes On Garmin Case Study Help has specific strengths that can be utilized to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Gps To Go Takes On Garmin Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position permits the business to consider several advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restraints for the company in executing its development program. The weaknesses of Gps To Go Takes On Garmin Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting Gps To Go Takes On Garmin Case Study Solution as well, however the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has postured specific threats to Gps To Go Takes On Garmin Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Gps To Go Takes On Garmin Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total profits of Gps To Go Takes On Garmin Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a big number of consumers at a potential rate.
Together with it, the second chart which shows the annual growth in the Gps To Go Takes On Garmin Case Study Help total properties, reveals that the business is rather efficient in adding worth to its assets through its profits. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the distribution of overall profits of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Gps To Go Takes On Garmin Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the overall company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Gps To Go Takes On Garmin Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Gps To Go Takes On Garmin Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Gps To Go Takes On Garmin Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Gps To Go Takes On Garmin Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the decreasing market growth. Intro of digital publishing could show to be an immediate service with low amount of risk for the business. However, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the data related to the consumer demand, the possible markets, the government guidelines and the information associated with the competitors presented in the market. After that, the business ought to choose one potential segment for its preliminary offering. It must gather research that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the company should go for the preliminary offering. If the initial offering shows a success, the business should choose the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
