If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution and Analysis
If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and interaction services. Significant service segments of the company consist of; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis has ended up being a specialized info supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis has particular strengths that can be made use of to reduce the risks, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position permits the business to think about a number of advancement opportunities with no fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in executing its development program. The weaknesses of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis are given 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 extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is decreasing because 2008, impacting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular risks to If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the annual overall revenues of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in attracting a large number of consumers at a possible price.
In addition to it, the second graph which reveals the annual growth in the If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help total possessions, shows that the business is rather efficient in including worth to its possessions through its incomes. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis concerning the circulation of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a potential development to attain its future development goal.
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving 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 choices.
Technological forces impacting the CMP consist of the technological advancement 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 products, if specific actions would not be taken quickly.
Environmental forces impacting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution consists of the issues of ecological neighborhoods over the use 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 should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution include the suppliers 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.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution 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 duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market sectors, with a significant concentrate on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• 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.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining market growth. Intro of digital publishing might show to be an instant service with low amount of danger for the business. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially collects the information related to the customer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term existence, however the situation can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.