If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution and Analysis
Intro
If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing information and communication services. Major service segments of the business consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help has ended up being a specialized information company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis has specific strengths that can be made use of to decrease the hazards, overcome the weak point and obtain 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 Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restrictions for the business in executing its development program. The weak points of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution as well, but the development could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually presented specific threats to If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall profits of If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite effective in bring in a large number of consumers at a prospective rate.
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 Analysis total properties, shows that the business is quite effective in adding value to its assets through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis concerning the distribution of overall earnings of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Analysis business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Help includes the concerns of environmental 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 used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the files presented in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors 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 one of the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a significant concentrate on academic publications. CIP acts as a threat 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 If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as If Money Doesnt Make You Happy You Probably Arent Spending It Right Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the customer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a risk to the business's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
