J C Penney 2 Case Study Solution and Analysis
Intro
J C Penney 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing info and interaction services. Major business sectors of the company include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. J C Penney 2 Case Study Solution has actually ended up being a specialized information company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and J C Penney 2 Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 valuable experience, technical resources and the abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
J C Penney 2 Case Study Analysis has certain strengths that can be utilized to lower the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of J C Penney 2 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which could increase restraints for the business in implementing its development program. The weaknesses of J C Penney 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, 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 must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting J C Penney 2 Case Study Solution as well, however the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has presented certain risks to J C Penney 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of J C Penney 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of J C Penney 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather effective in drawing in a big number of clients at a possible rate.
In addition to it, the 2nd graph which reveals the yearly development in the J C Penney 2 Case Study Solution overall possessions, reveals that the company is quite effective in including worth to its assets through its earnings. The development in assets shows that the total worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis concerning the circulation of total earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting J C Penney 2 Case Study Solution service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials etc. China has the highest population worldwide with a high population development, showing the increasing number of consumers of the J C Penney 2 Case Study Analysis. However, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting J C Penney 2 Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the J C Penney 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of J C Penney 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a major focus on academic publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of J C Penney 2 Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as J C Penney 2 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining market development. Therefore, introduction of digital publishing could prove to be an immediate solution with low quantity of threat for the business. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first gathers the data connected to the consumer need, the potential markets, the government guidelines and the information connected to the competitors presented in the market. After that, the business should decide one prospective segment for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. The business should go for the other markets if the preliminary 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 industry is declining considering that 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
