J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution and Analysis
J C Penneys Fair And Square Pricing Strategy 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing information and interaction services. Significant organisation segments of the business include; books, regulars, consultancy and distribution. The business has a vast product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution has actually become a specialized information company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, J C Penneys Fair And Square Pricing Strategy 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several 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 abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis has specific strengths that can be used to decrease the risks, overcome 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 Solution in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the company to consider a number of advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing market is decreasing since 2008, affecting J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis as well, however the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented specific dangers to J C Penneys Fair And Square Pricing Strategy 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the risk of losing the customer base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly total earnings of J C Penneys Fair And Square Pricing Strategy 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a potential price.
In addition to it, the 2nd graph which shows the yearly development in the J C Penneys Fair And Square Pricing Strategy 2 Case Study Solution overall properties, reveals that the business is rather effective in adding worth to its assets through its revenues. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered data might be the analysis concerning the distribution of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a prospective development to achieve its future development objective.
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting J C Penneys Fair And Square Pricing Strategy 2 Case Study Help business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting J C Penneys Fair And Square Pricing Strategy 2 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market 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 Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of J C Penneys Fair And Square Pricing Strategy 2 Case Study Help 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 might 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 service scale. It is likewise among the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
As the choices are moving towards digital publishing and the company need an immediate solution to avoid the declining industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the consumer need, the possible markets, the government regulations and the information related to the competitors 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 implement its digital publishing program.
Although, the growth of the publishing industry is declining considering that 2008, showing a risk to the business's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.