Jc Penny Company 3 Case Study Solution and Analysis
Jc Penny Company 3 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing information and interaction services. Major business sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports etc. Jc Penny Company 3 Case Study Solution has actually become a specialized information company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Jc Penny Company 3 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Jc Penny Company 3 Case Study Analysis has particular strengths that can be used to decrease the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Jc Penny Company 3 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong financial position permits the business to think about a number of advancement opportunities without any worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Jc Penny Company 3 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining considering that 2008, impacting Jc Penny Company 3 Case Study Help as well, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed particular dangers to Jc Penny Company 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Jc Penny Company 3 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market along with existence of high competition increases the danger of losing the customer base.
The business has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be computed. The general monetary performance of the company could be evaluated by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Jc Penny Company 3 Case Study Analysis is growing and the company is quite effective in bring in a large number of customers at a potential price.
In addition to it, the second graph which shows the annual growth in the Jc Penny Company 3 Case Study Analysis total assets, reveals that the company is rather efficient in adding worth to its assets through its incomes. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the circulation of total profits of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a possible development to accomplish its future development objective.
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Jc Penny Company 3 Case Study Solution 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 combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Jc Penny Company 3 Case Study Analysis consists of 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 must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the digital libraries on specific websites. The changing customer choices towards digital learning increase the risk of replacement for the market.
Competitive rivalry in the publishing market 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 competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Jc Penny Company 3 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality files at competitive costs.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Jc Penny Company 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a significant concentrate on instructional publications. CIP functions as a hazard 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 marketplace share of Jc Penny Company 3 Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Jc Penny Company 3 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining market development. Introduction of digital publishing might show to be an immediate service with low amount of threat for the company. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to first collects the information associated with the customer need, the prospective markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company must choose one possible section for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business need to choose the preliminary offering. If the preliminary offering proves a success, the business must opt for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing industry is declining given that 2008, showing a threat to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.