J C Penney Reinventing Fair And Square Deals A Case Study Solution and Analysis
Introduction
J C Penney Reinventing Fair And Square Deals A Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing details and communication services. Significant company sectors of the business include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. J C Penney Reinventing Fair And Square Deals A Case Study Solution has become a specialized info company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, J C Penney Reinventing Fair And Square Deals A Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 capabilities 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
J C Penney Reinventing Fair And Square Deals A Case Study Help has particular strengths that can be used to minimize the risks, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of J C Penney Reinventing Fair And Square Deals A Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong financial position enables the company to think about a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of J C Penney Reinventing Fair And Square Deals A Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting J C Penney Reinventing Fair And Square Deals A Case Study Help also, but the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition 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 using its huge financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to J C Penney Reinventing Fair And Square Deals A Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of J C Penney Reinventing Fair And Square Deals A Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. However, the overall financial efficiency of the business might be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of J C Penney Reinventing Fair And Square Deals A Case Study Solution is growing and the company is quite effective in attracting a large number of consumers at a potential rate.
In addition to it, the second graph which shows the annual development in the J C Penney Reinventing Fair And Square Deals A Case Study Help total assets, shows that the company is rather efficient in adding worth to its properties through its earnings. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of overall profits of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the J C Penney Reinventing Fair And Square Deals A Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful products etc. China has the greatest population in the world with a high population development, showing the increasing variety of customers of the J C Penney Reinventing Fair And Square Deals A Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting J C Penney Reinventing Fair And Square Deals A Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations 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 initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the J C Penney Reinventing Fair And Square Deals A Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly 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 Reinventing Fair And Square Deals A Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in different market sectors, with a major focus on academic publications. CIP functions 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 J C Penney Reinventing Fair And Square Deals A Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the decreasing industry development. Therefore, intro of digital publishing could prove to be an instant solution with low amount of danger for the business. However, the company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data associated with the consumer need, the prospective markets, the government policies and the information associated with the rivals presented in the market. After that, the business should decide one potential section for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing competitors' items. The actions above the business should go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
