J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution and Analysis
Introduction
J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 capabilities of the company could be utilized to strive for 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 Penneys Fair And Square Pricing Strategy 2 Case Study Analysis has particular strengths that can be utilized to decrease the threats, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase constraints for the company in executing its advancement program. The weak points of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution also, however the development could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular dangers to J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall revenues of J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a large number of customers at a possible cost.
In addition to it, the 2nd graph which reveals the annual growth in the J C Penneys Fair And Square Pricing Strategy 2 Case Study Help total properties, shows that the company is rather effective in adding worth to its assets through its incomes. The growth in assets shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the circulation of overall revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the overall service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative products and so on. China has the greatest population worldwide with a high population development, revealing the increasing variety of customers of the J C Penneys Fair And Square Pricing Strategy 2 Case Study Help. Nevertheless, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A brief 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 prospective growth in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. 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 providers of the J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of J C Penneys Fair And Square Pricing Strategy 2 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 duration, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sectors, with a major focus on academic publications. 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 marketplace share of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an instant option to avoid the declining industry growth. Therefore, intro of digital publishing might prove to be an immediate service with low amount of danger for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data related to the consumer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a danger to the business's long term presence, but the circumstance can be controlled by considering a development strategy 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 threat of failure for entryway in the brand-new markets.
