Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution and Analysis
Introduction
Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions 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 abilities of the business could be used 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
Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution has specific strengths that can be used to lower the hazards, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the business to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Analysis as well, but the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually posed particular dangers to Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors 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 using particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly total incomes of Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a prospective rate.
Along with it, the second chart which shows the yearly growth in the Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Analysis overall assets, shows that the company is quite efficient in adding worth to its possessions through its earnings. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the circulation of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset 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 Celebration of China. Therefore, it might be said that the total political forces impacting Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given 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 new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Help consist of 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 Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Infineon Raceway Sears Point Raceway Marketing In The Motorsports World Case Study Analysis 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to prevent the declining market development. Therefore, intro of digital publishing could show to be an instant service with low amount of danger for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the data related to the consumer demand, the prospective markets, the government regulations and the data related to the rivals provided in the market. After that, the business needs to decide one prospective segment for its initial offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the business should go for the initial offering. The business needs to go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
