Jc Penneys Fair And Square Pricing Strategy Case Study Solution and Analysis
Introduction
Jc Penneys Fair And Square Pricing Strategy Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and Jc Penneys Fair And Square Pricing Strategy Case Study Help in particular. These aspects consist of;
• Entryway 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 change of the macro markets have raised a number of concerns 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 abilities of the company could be used 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
Jc Penneys Fair And Square Pricing Strategy Case Study Solution has specific strengths that can be made use of to lower the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Jc Penneys Fair And Square Pricing Strategy Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the business to consider several advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Jc Penneys Fair And Square Pricing Strategy Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Jc Penneys Fair And Square Pricing Strategy Case Study Help as well, but the growth could be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually positioned particular threats to Jc Penneys Fair And Square Pricing Strategy Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Jc Penneys Fair And Square Pricing Strategy Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total incomes of Jc Penneys Fair And Square Pricing Strategy Case Study Help throughout the duration 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 effective in attracting a big number of consumers at a potential cost.
In addition to it, the second chart which reveals the yearly growth in the Jc Penneys Fair And Square Pricing Strategy Case Study Analysis overall properties, shows that the business is quite efficient in adding value to its possessions through its profits. The growth in properties reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the circulation of total incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Jc Penneys Fair And Square Pricing Strategy Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Jc Penneys Fair And Square Pricing Strategy Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Jc Penneys Fair And Square Pricing Strategy Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Jc Penneys Fair And Square Pricing Strategy Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks second and third in various market sections, with a major focus on educational publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Jc Penneys Fair And Square Pricing Strategy Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Jc Penneys Fair And Square Pricing Strategy Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining industry development. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must initially collects the information connected to the customer need, the prospective markets, the government regulations and the information connected to the competitors presented in the market. After that, the company needs to choose one prospective sector for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business must opt for the preliminary offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a threat to the company's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
