Grand Circle Travel Where Risk Comes With The Territory Case Study Solution and Analysis
Intro
Grand Circle Travel Where Risk Comes With The Territory Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Grand Circle Travel Where Risk Comes With The Territory Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns 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 business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Grand Circle Travel Where Risk Comes With The Territory Case Study Solution has particular strengths that can be utilized to lower the dangers, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Grand Circle Travel Where Risk Comes With The Territory Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position enables the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Grand Circle Travel Where Risk Comes With The Territory Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business 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 specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Grand Circle Travel Where Risk Comes With The Territory Case Study Help also, but the development could be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned particular hazards to Grand Circle Travel Where Risk Comes With The Territory Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Grand Circle Travel Where Risk Comes With The Territory Case Study Help due to the customer shift towards digital libraries.
• The existence of large number 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 utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual overall revenues of Grand Circle Travel Where Risk Comes With The Territory Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
In addition to it, the 2nd chart which shows the annual growth in the Grand Circle Travel Where Risk Comes With The Territory Case Study Solution total assets, shows that the business is quite effective in adding value to its possessions through its revenues. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the given information could be the analysis regarding the circulation of total profits of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Grand Circle Travel Where Risk Comes With The Territory Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market. Along with it, the economic policies connected to the import of books impact the total business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Grand Circle Travel Where Risk Comes With The Territory Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Grand Circle Travel Where Risk Comes With The Territory Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Grand Circle Travel Where Risk Comes With The Territory Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus 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
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
