Life Journey Profile Nicole Gardner Case Study Solution and Analysis
Intro
Life Journey Profile Nicole Gardner Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing information and interaction services. Significant business sections of the business include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Life Journey Profile Nicole Gardner Case Study Analysis has become a specialized info service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Life Journey Profile Nicole Gardner Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Life Journey Profile Nicole Gardner Case Study Analysis has particular strengths that can be made use of to reduce the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Life Journey Profile Nicole Gardner Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Life Journey Profile Nicole Gardner Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Life Journey Profile Nicole Gardner Case Study Help too, however the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific hazards to Life Journey Profile Nicole Gardner Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Life Journey Profile Nicole Gardner Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry together with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. However, the general financial performance of the business might be examined by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Life Journey Profile Nicole Gardner Case Study Help is growing and the company is rather effective in bring in a a great deal of consumers at a prospective rate.
Along with it, the 2nd graph which reveals the annual growth in the Life Journey Profile Nicole Gardner Case Study Help overall possessions, shows that the company is quite effective in including worth to its possessions through its revenues. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the circulation of overall profits of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Life Journey Profile Nicole Gardner Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the total organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer'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 consumers of the Life Journey Profile Nicole Gardner Case Study Help. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Life Journey Profile Nicole Gardner Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized 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.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
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 rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Life Journey Profile Nicole Gardner Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence 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 Life Journey Profile Nicole Gardner Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in various market sections, with a significant focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Life Journey Profile Nicole Gardner Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible 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 using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the declining market development. Intro of digital publishing might prove to be an instant service with low quantity of threat for the business. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first collects the data related to the consumer need, the possible markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, showing a danger to the business's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
