Kansas City Zephyrs Baseball Club Inc Case Study Solution and Analysis
Introduction
Kansas City Zephyrs Baseball Club Inc Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing information and interaction services. Major service sections of the business include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Kansas City Zephyrs Baseball Club Inc Case Study Help has actually ended up being a specialized info service provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing industry in basic and Kansas City Zephyrs Baseball Club Inc Case Study Analysis in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kansas City Zephyrs Baseball Club Inc Case Study Solution has specific strengths that can be used to minimize the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Kansas City Zephyrs Baseball Club Inc Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to think about a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of Kansas City Zephyrs Baseball Club Inc Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Kansas City Zephyrs Baseball Club Inc Case Study Help as well, but the growth might be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular risks to Kansas City Zephyrs Baseball Club Inc Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Kansas City Zephyrs Baseball Club Inc Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total profits of Kansas City Zephyrs Baseball Club Inc Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather effective in bring in a big number of customers at a possible rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Kansas City Zephyrs Baseball Club Inc Case Study Help overall possessions, reveals that the company is rather efficient in adding value to its properties through its incomes. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of total revenues of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might 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 highly supervised and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Kansas City Zephyrs Baseball Club Inc Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the economic policies connected to the import of books impact the total service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Kansas City Zephyrs Baseball Club Inc Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies 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 Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Kansas City Zephyrs Baseball Club Inc Case Study Analysis include the providers 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 Purchaser.
Haggling 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 files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Kansas City Zephyrs Baseball Club Inc Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Kansas City Zephyrs Baseball Club Inc Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing 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 brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing market development. The business could likewise 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 ought to initially collects the data related to the customer demand, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
