Mustang Music B Case Study Solution and Analysis
Intro
Mustang Music B Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Mustang Music B Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 abilities of the business could be utilized 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
Mustang Music B Case Study Solution has specific strengths that can be made use of to decrease the threats, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Mustang Music B Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the business to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weaknesses of Mustang Music B Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Mustang Music B Case Study Help as well, however the development might be revived by availing certain chances presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular threats to Mustang Music B Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Mustang Music B Case Study Help due to the consumer 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 utilizing certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be computed. Nevertheless, the general financial efficiency of the business might be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Mustang Music B Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of clients at a prospective rate.
Together with it, the second chart which reveals the annual growth in the Mustang Music B Case Study Analysis total assets, shows that the business is quite efficient in adding value to its possessions through its earnings. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis relating to the distribution of total earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Mustang Music B Case Study Help 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 combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the general business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Mustang Music B Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Mustang Music B Case Study Analysis 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 used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market 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 competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Mustang Music B Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Mustang Music B Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Mustang Music B Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an instant solution to avoid the declining market growth. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to initially gathers the information related to the customer demand, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business needs 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 market is declining given that 2008, showing a risk to the company's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
