Its Not About Winning Its About Getting Better Case Study Solution and Analysis
Introduction
Its Not About Winning Its About Getting Better Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Its Not About Winning Its About Getting Better Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change 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 situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Its Not About Winning Its About Getting Better Case Study Analysis has specific strengths that can be made use of to decrease the hazards, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Its Not About Winning Its About Getting Better Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the company to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase constraints for the business in executing its development program. The weak points of Its Not About Winning Its About Getting Better Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting Its Not About Winning Its About Getting Better Case Study Solution too, however the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has postured certain threats to Its Not About Winning Its About Getting Better Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Its Not About Winning Its About Getting Better Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be computed. The total financial efficiency of the company could be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Its Not About Winning Its About Getting Better Case Study Solution is growing and the business is quite effective in attracting a a great deal of customers at a possible price.
Together with it, the second chart which reveals the annual growth in the Its Not About Winning Its About Getting Better Case Study Solution total assets, reveals that the business is quite efficient in adding value to its properties through its profits. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the circulation of total revenues of the business. Huge part of the revenues of CMP originates 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 prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP 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.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Its Not About Winning Its About Getting Better Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Its Not About Winning Its About Getting Better Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence 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, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Its Not About Winning Its About Getting Better Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Its Not About Winning Its About Getting Better Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant concentrate on educational 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 market share of Its Not About Winning Its About Getting Better Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Its Not About Winning Its About Getting Better Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining industry growth. Therefore, intro of digital publishing might prove to be an instant service with low amount of risk for the business. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first collects the data related to the customer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
