J C Penney Reinventing Fair And Square Deals A Case Study Solution and Analysis
J C Penney Reinventing Fair And Square Deals A Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Major business segments of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products include books, periodicals, online media, exhibitions, research study reports and so on. J C Penney Reinventing Fair And Square Deals A Case Study Analysis has actually become a specialized info service provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, J C Penney Reinventing Fair And Square Deals A Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
J C Penney Reinventing Fair And Square Deals A Case Study Help has specific strengths that can be made use of to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of J C Penney Reinventing Fair And Square Deals A Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the business to consider numerous development opportunities without any fear of raising fund externally.
In addition to the strengths, the company has certain weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of J C Penney Reinventing Fair And Square Deals A Case Study Analysis are offered as follows;
• Despite of being a science and technology 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 growth. It must propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing considering that 2008, affecting J C Penney Reinventing Fair And Square Deals A Case Study Help as well, however the growth could be revived by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific hazards to J C Penney Reinventing Fair And Square Deals A Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining 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 a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the danger of losing the client base.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. The overall financial efficiency of the business could be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, showing 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 efficient in drawing in a large number of consumers at a prospective cost.
Along with it, the second chart which reveals the yearly development in the J C Penney Reinventing Fair And Square Deals A Case Study Analysis total properties, reveals that the company is quite effective in including value to its properties through its profits. The growth in properties reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the circulation of total profits of the business. Major part of the revenues 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 service sections with a potential development to accomplish its future development objective.
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Ecological forces affecting J C Penney Reinventing Fair And Square Deals A Case Study Help includes the issues of ecological 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 utilized while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on 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 suppliers of the J C Penney Reinventing Fair And Square Deals A Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of J C Penney Reinventing Fair And Square Deals A Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• 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 business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry development. Intro of digital publishing could prove to be an instant solution with low amount of risk for the business. The company could also consider the growth 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 information connected to the consumer demand, the potential markets, the government policies and the data connected to the competitors provided in the market. After that, the company ought to decide one prospective segment for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' products. The actions above the business must go for the preliminary offering. If the initial offering shows a success, the company should choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing market is declining since 2008, showing a risk to the business's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.