Martha Stewart A 3 Case Study Solution and Analysis
Intro
Martha Stewart A 3 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing info and communication services. Major company sections of the business include; books, periodicals, consultancy and distribution. The company has a large item portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Martha Stewart A 3 Case Study Solution has become a specialized details service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Martha Stewart A 3 Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP 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 strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 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
Martha Stewart A 3 Case Study Solution has certain strengths that can be made use of to reduce the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Martha Stewart A 3 Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Martha Stewart A 3 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting Martha Stewart A 3 Case Study Analysis also, however the growth could be restored by availing particular chances provided in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually posed certain risks to Martha Stewart A 3 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Martha Stewart A 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. The overall monetary performance of the business might be examined by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Martha Stewart A 3 Case Study Help is growing and the business is quite efficient in drawing in a large number of clients at a possible cost.
In addition to it, the second graph which shows the yearly development in the Martha Stewart A 3 Case Study Solution total assets, reveals that the company is rather efficient in adding worth to its properties through its revenues. The growth in possessions reveals that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis relating to the circulation of total incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful products etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Martha Stewart A 3 Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Martha Stewart A 3 Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning 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 forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
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. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Martha Stewart A 3 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Martha Stewart A 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a major focus on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Martha Stewart A 3 Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Martha Stewart A 3 Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 organisation sections to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant service to prevent the declining industry development. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer demand, the possible markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a risk to the business's long term presence, but the situation can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
