Mustang Music A Case Study Solution and Analysis
Intro
Mustang Music A Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Mustang Music A Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the abilities of the company 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
Mustang Music A Case Study Help has specific strengths that can be used to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Mustang Music A Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restraints for the business in implementing its advancement program. The weak points of Mustang Music A Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Mustang Music A Case Study Analysis as well, but the development could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has presented specific risks to Mustang Music A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Mustang Music A Case Study Help due to the consumer shift towards digital 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 competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry together with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The overall financial performance of the business might be analyzed by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Mustang Music A Case Study Analysis is growing and the business is quite effective in bring in a large number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the yearly development in the Mustang Music A Case Study Help total possessions, reveals that the company is rather effective in adding worth to its assets through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis concerning the distribution of overall profits of the company. Huge part of the profits 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 organisation sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the performance of the business and the current 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 effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Mustang Music A Case Study Help. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Mustang Music A Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Mustang Music A Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Mustang Music A Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in numerous market sectors, with a major focus on instructional publications. CIP acts 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 Mustang Music A Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining market development. Intro of digital publishing could show to be an instant solution with low amount of danger for the company. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should initially gathers the data related to the consumer demand, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a danger to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
