J C Penney 2 Case Study Solution and Analysis
J C Penney 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and J C Penney 2 Case Study Help in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
J C Penney 2 Case Study Analysis has certain strengths that can be utilized to minimize the hazards, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of J C Penney 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the company to consider several advancement chances without any worry of raising fund externally.
Along with the strengths, the company has specific weak points which might increase restrictions for the company in executing its development program. The weak points of J C Penney 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing market is decreasing because 2008, impacting J C Penney 2 Case Study Analysis as well, but the development could be restored by availing specific opportunities 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 customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has actually presented specific threats to J C Penney 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of J C Penney 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the customer base.
Due to absence of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly overall earnings of J C Penney 2 Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a prospective rate.
Along with it, the 2nd chart which reveals the annual development in the J C Penney 2 Case Study Solution total properties, reveals that the company is rather effective in adding worth to its possessions through its earnings. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the distribution of overall profits of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a possible growth to achieve its future advancement goal.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the J C Penney 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful products and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the J C Penney 2 Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting J C Penney 2 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the J C Penney 2 Case Study Help include the providers of the paper for publishing files. 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.
Negotiating 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 marketplace saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of J C Penney 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a significant focus on instructional publications. CIP functions as a threat 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 market share of J C Penney 2 Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company 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 together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the declining market development. Therefore, intro of digital publishing could show to be an instant option with low amount of risk for the company. However, the business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the data connected to the customer demand, the possible markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the company needs to choose one prospective section for its preliminary offering. It ought to gather research that how it might differentiate its digital publishing from the existing competitors' items. The steps above the company need to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, showing a hazard to the company's long term existence, however the scenario can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.