Kindle Fire Case Study Solution and Analysis
Intro
Kindle Fire Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Kindle Fire Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 situation? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kindle Fire Case Study Analysis has particular strengths that can be used to minimize the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Kindle Fire Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position allows the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restraints for the company in implementing its development program. The weak points of Kindle Fire Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Kindle Fire Case Study Help as well, however the growth could be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned specific dangers to Kindle Fire Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Kindle Fire Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP might not be determined. The overall monetary performance of the company might be examined by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Kindle Fire Case Study Help is growing and the business is quite effective in attracting a large number of consumers at a prospective rate.
Together with it, the 2nd chart which shows the annual development in the Kindle Fire Case Study Analysis overall assets, reveals that the business is rather efficient in adding value to its possessions through its revenues. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of total revenues of the business. Huge 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 business might move towards other company sections with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting Kindle Fire Case Study Help service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Kindle Fire Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Kindle Fire Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Kindle Fire Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Kindle Fire Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Kindle Fire Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger 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 danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry growth. For that reason, introduction of digital publishing could show to be an instant service with low quantity of danger for the business. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the information related to the consumer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company ought to 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 decreasing given that 2008, revealing a risk to the company's long term presence, however the situation can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
