Jc Penny Company 3 Case Study Solution and Analysis
Introduction
Jc Penny Company 3 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Jc Penny Company 3 Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Jc Penny Company 3 Case Study Help has certain strengths that can be utilized to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Jc Penny Company 3 Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position allows the business to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business 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 technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Jc Penny Company 3 Case Study Analysis also, but the growth could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might likewise present 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 expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain hazards to Jc Penny Company 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Jc Penny Company 3 Case Study Help due to the consumer shift towards virtual libraries.
• The existence 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 gain a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be determined. The overall financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Jc Penny Company 3 Case Study Help is growing and the business is rather effective in bring in a large number of consumers at a potential cost.
Together with it, the 2nd graph which reveals the annual growth in the Jc Penny Company 3 Case Study Analysis total possessions, shows that the company is rather efficient in including value to its properties through its profits. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the circulation of total revenues of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful products etc. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Jc Penny Company 3 Case Study Help. However, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Jc Penny Company 3 Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Jc Penny Company 3 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number 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 Jc Penny Company 3 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 sectors to the new one can lead the company to lose need 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 decreasing industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to first gathers the data associated with the consumer demand, the possible markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company ought to choose one prospective section for its preliminary offering. It should collect research study that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business must go for the initial offering. If the initial offering proves a success, the company ought to choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a hazard to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company could think about 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.
