J C Penney Reinventing Fair And Square Deals B Case Study Solution and Analysis
J C Penney Reinventing Fair And Square Deals B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big 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 B Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These factors consist of;
• Entryway of the brand-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 change 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 capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
J C Penney Reinventing Fair And Square Deals B Case Study Help has specific strengths that can be made use of to decrease the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of J C Penney Reinventing Fair And Square Deals B Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the business to consider a number of development opportunities without any fear of raising fund externally.
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of J C Penney Reinventing Fair And Square Deals B Case Study Help are provided 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 extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is declining because 2008, affecting J C Penney Reinventing Fair And Square Deals B Case Study Analysis too, however the development might be restored by availing certain chances 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 consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain threats to J C Penney Reinventing Fair And Square Deals B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of J C Penney Reinventing Fair And Square Deals B Case Study Help due to the customer shift towards digital libraries.
• The presence 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 acquire a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the client base.
The business has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The total monetary efficiency of the business could be evaluated by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of J C Penney Reinventing Fair And Square Deals B Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of clients at a potential price.
Together with it, the second chart which reveals the yearly growth in the J C Penney Reinventing Fair And Square Deals B Case Study Solution overall assets, reveals that the company is quite effective in adding worth to its possessions through its profits. The growth in properties shows that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the circulation of overall revenues 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 could move towards other service segments with a prospective development to accomplish its future advancement objective.
PESTEL analysis might be conducted to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting J C Penney Reinventing Fair And Square Deals B Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful 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 Reinventing Fair And Square Deals B Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting J C Penney Reinventing Fair And Square Deals B Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market 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 marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the J C Penney Reinventing Fair And Square Deals B Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of J C Penney Reinventing Fair And Square Deals B Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a significant focus on academic publications. CIP serves 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 marketplace share of J C Penney Reinventing Fair And Square Deals B Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as J C Penney Reinventing Fair And Square Deals B Case Study Solution and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business 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 market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing market growth. Intro of digital publishing could prove to be an instant service with low amount of risk for the business. Nevertheless, the company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first collects the data related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing market is declining because 2008, showing a risk to the company's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.