Groupon And The Sec Case Study Solution and Analysis
Intro
Groupon And The Sec Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing details and communication services. Major company segments of the business include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major items include books, periodicals, online media, exhibits, research reports and so on. Groupon And The Sec Case Study Analysis has ended up being a specialized information company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Groupon And The Sec Case Study Solution in specific. These elements consist of;
• Entrance of the new publishing companies in the industry.
• 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 numerous 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 abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Groupon And The Sec Case Study Help has specific strengths that can be utilized to decrease the hazards, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Groupon And The Sec Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position permits the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Groupon And The Sec Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods 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 strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Groupon And The Sec Case Study Analysis as well, however the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular threats to Groupon And The Sec Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Groupon And The Sec Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. The total monetary performance of the business could be analyzed by utilizing the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Groupon And The Sec Case Study Analysis is growing and the business is rather effective in attracting a a great deal of clients at a prospective rate.
In addition to it, the 2nd graph which reveals the yearly development in the Groupon And The Sec Case Study Help overall assets, shows that the business is quite effective in including value to its properties through its revenues. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of overall profits of the business. Major 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 business might move towards other service sectors with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the company and the recent 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 could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Groupon And The Sec Case Study Help. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Groupon And The Sec Case Study Analysis consists of the issues of ecological 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 utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Groupon And The Sec Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Groupon And The Sec Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sections, with a major focus on academic publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Groupon And The Sec Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
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 achieve its future development. As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing industry development. Introduction of digital publishing could show to be an immediate option with low quantity of threat for the business. However, the business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business needs to initially collects the information related to the consumer need, the possible markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a danger to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
