London Grand Bend Bicycle Tour 2 Case Study Solution and Analysis
Intro
London Grand Bend Bicycle Tour 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and London Grand Bend Bicycle Tour 2 Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several 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 capabilities of the company could be made use of 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
London Grand Bend Bicycle Tour 2 Case Study Solution has certain strengths that can be used to lower the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of London Grand Bend Bicycle Tour 2 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to consider several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of London Grand Bend Bicycle Tour 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion 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 London Grand Bend Bicycle Tour 2 Case Study Solution as well, however the development could be restored by availing particular chances provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually positioned specific risks to London Grand Bend Bicycle Tour 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of London Grand Bend Bicycle Tour 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market together with presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual overall profits of London Grand Bend Bicycle Tour 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in drawing in a large number of clients at a prospective price.
Together with it, the second graph which reveals the yearly development in the London Grand Bend Bicycle Tour 2 Case Study Help total possessions, shows that the business is quite efficient in including worth to its possessions through its profits. The growth in assets shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of total revenues of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting London Grand Bend Bicycle Tour 2 Case Study Solution company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the London Grand Bend Bicycle Tour 2 Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books affect the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials etc. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the London Grand Bend Bicycle Tour 2 Case Study Help. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting London Grand Bend Bicycle Tour 2 Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence 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. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the London Grand Bend Bicycle Tour 2 Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of London Grand Bend Bicycle Tour 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as London Grand Bend Bicycle Tour 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing 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.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors 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 business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing market development. Introduction of digital publishing might prove to be an instant service with low quantity of danger for the company. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data associated with the customer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the business ought to decide one prospective segment for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the preliminary offering. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
