Mafiaboy Case Study Solution and Analysis
Introduction
Mafiaboy Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Mafiaboy Case Study Analysis in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Mafiaboy Case Study Help has certain strengths that can be made use of to lower the risks, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Mafiaboy Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position permits the company to think about numerous development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Mafiaboy Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company 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 should propose particular growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Mafiaboy Case Study Help too, but the growth might be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize 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 industry has actually posed certain threats to Mafiaboy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Mafiaboy Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be calculated. Nevertheless, the total monetary efficiency of the company might be evaluated by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Mafiaboy Case Study Help is growing and the business is quite effective in drawing in a large number of clients at a possible cost.
Along with it, the 2nd chart which shows the annual growth in the Mafiaboy Case Study Help total possessions, reveals that the company is rather efficient in adding value to its properties through its profits. The development in properties shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the distribution of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Mafiaboy Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Mafiaboy Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the total company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Mafiaboy Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Mafiaboy Case Study Solution consists of the concerns of environmental neighborhoods 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 utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved 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 could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the documents provided in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Mafiaboy Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Mafiaboy Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in numerous market sectors, with a significant focus on educational publications. CIP serves as a hazard 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 marketplace share of Mafiaboy Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise 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 reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an immediate service to avoid the declining market growth. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first collects the information related to the consumer demand, the potential markets, the government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to 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 market is declining because 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
