Groupon Case Study Solution and Analysis
Introduction
Groupon Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Groupon Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Groupon Case Study Solution has particular strengths that can be utilized to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Groupon Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position allows the business to consider several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Groupon Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional 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 expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting Groupon Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to Groupon Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Groupon Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual overall revenues of Groupon Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a big number of customers at a potential cost.
Together with it, the 2nd graph which reveals the yearly growth in the Groupon Case Study Help total properties, shows that the business is rather efficient in adding worth to its properties through its earnings. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the distribution of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the business and the current 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 considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Groupon Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Groupon Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Groupon Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Groupon Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a significant concentrate on educational publications. CIP serves 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 might wean the marketplace share of Groupon Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat 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 service sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the decreasing market development. Introduction of digital publishing might show to be an instant option with low amount of danger for the business. However, the company might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the data related to the consumer need, the potential markets, the federal government regulations and the data related to the competitors 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.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a threat to the business's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
