Mattels Barbie Needs Makeover Case Study Solution and Analysis
Introduction
Mattels Barbie Needs Makeover Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing information and interaction services. Major service sectors of the company include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Mattels Barbie Needs Makeover Case Study Help has actually become a specialized info supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and Mattels Barbie Needs Makeover Case Study Analysis in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• 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 concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business 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
Mattels Barbie Needs Makeover Case Study Solution has particular strengths that can be used to decrease the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Mattels Barbie Needs Makeover Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position permits the business to think about several development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in implementing its development program. The weak points of Mattels Barbie Needs Makeover Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Mattels Barbie Needs Makeover Case Study Analysis as well, but the growth might be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually posed certain threats to Mattels Barbie Needs Makeover Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Mattels Barbie Needs Makeover Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The total monetary efficiency of the company might be analyzed by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Mattels Barbie Needs Makeover Case Study Solution is growing and the business is quite effective in attracting a a great deal of clients at a potential price.
Together with it, the 2nd graph which reveals the yearly growth in the Mattels Barbie Needs Makeover Case Study Solution total assets, shows that the business is rather efficient in including worth to its possessions through its revenues. The growth in properties shows that the overall value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the circulation of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful materials and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the Mattels Barbie Needs Makeover Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Mattels Barbie Needs Makeover Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry 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 rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Mattels Barbie Needs Makeover Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Mattels Barbie Needs Makeover Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in various market segments, with a major focus on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Mattels Barbie Needs Makeover Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Mattels Barbie Needs Makeover Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market growth. Therefore, intro of digital publishing could show to be an immediate option with low amount of risk for the company. The business might also 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 must first gathers the information associated with the customer need, the possible markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company needs to decide one potential section for its preliminary offering. It needs to collect research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business ought to choose the initial offering. If the initial offering proves a success, the company must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
