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 Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and J C Penney Reinventing Fair And Square Deals B Case Study Help in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several questions 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 business could be used to pursue the future development unceasingly? How could the company 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 used to reduce the dangers, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of J C Penney Reinventing Fair And Square Deals B Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong monetary position allows the business to think about several development chances with no worry of raising fund externally.
In addition to the strengths, the company has particular weak points which might increase constraints for the company in implementing its development program. The weaknesses of J C Penney Reinventing Fair And Square Deals B Case Study Analysis are given as follows;
• Despite of being a science and technology 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 development. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is declining since 2008, impacting J C Penney Reinventing Fair And Square Deals B Case Study Help as well, but the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing market has posed certain risks to J C Penney Reinventing Fair And Square Deals B Case Study Analysis including;( Gurel, 2017).
• Intro 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 Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the threat of losing the consumer base.
The company has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the overall financial performance of the business could be evaluated by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of J C Penney Reinventing Fair And Square Deals B Case Study Solution is growing and the business is quite effective in drawing in a a great deal of consumers at a potential cost.
In addition to it, the second graph which shows the annual development in the J C Penney Reinventing Fair And Square Deals B Case Study Help overall assets, reveals that the business is quite effective in including value to its possessions through its profits. The development in possessions shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a possible growth to attain its future development objective.
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic 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 total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful materials etc. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the J C Penney Reinventing Fair And Square Deals B Case Study Analysis. However, the customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting J C Penney Reinventing Fair And Square Deals B Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks 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 industry. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the J C Penney Reinventing Fair And Square Deals B Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of J C Penney Reinventing Fair And Square Deals B Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as J C Penney Reinventing Fair And Square Deals B Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the decreasing industry development. The business could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to initially collects the data related to the customer demand, the potential markets, the government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the business needs 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 decreasing considering that 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.