Jc Penny Company 2 Case Study Solution and Analysis
Intro
Jc Penny Company 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing information and interaction services. Significant organisation sections of the company include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Jc Penny Company 2 Case Study Solution has actually ended up being a specialized info service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Jc Penny Company 2 Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the capabilities of the business 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
Jc Penny Company 2 Case Study Help has particular strengths that can be made use of to minimize the threats, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Jc Penny Company 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Jc Penny Company 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting Jc Penny Company 2 Case Study Analysis too, however the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular threats to Jc Penny Company 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Jc Penny Company 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the yearly total incomes of Jc Penny Company 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a large number of consumers at a potential price.
Together with it, the 2nd graph which reveals the annual development in the Jc Penny Company 2 Case Study Help total possessions, reveals that the business is quite effective in including value to its possessions through its revenues. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis regarding the distribution of total profits of the company. Huge part of the profits of CMP comes 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 prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Jc Penny Company 2 Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Jc Penny Company 2 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on certain websites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Jc Penny Company 2 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Jc Penny Company 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a significant concentrate on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Jc Penny Company 2 Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the declining industry development. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer need, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a danger to the company's long term existence, however the scenario can be controlled by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
