Octane Fitness Inc The Power Of Focus Case Study Solution and Analysis
Intro
Octane Fitness Inc The Power Of Focus Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a large 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, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and Octane Fitness Inc The Power Of Focus Case Study Analysis in particular. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
Octane Fitness Inc The Power Of Focus Case Study Analysis has certain strengths that can be used to lower the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Octane Fitness Inc The Power Of Focus Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position permits the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Octane Fitness Inc The Power Of Focus Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Octane Fitness Inc The Power Of Focus Case Study Solution as well, however the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has posed specific dangers to Octane Fitness Inc The Power Of Focus Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Octane Fitness Inc The Power Of Focus Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. However, the total monetary efficiency of the company might be examined by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Octane Fitness Inc The Power Of Focus Case Study Analysis is growing and the company is rather effective in attracting a large number of clients at a possible price.
In addition to it, the second graph which reveals the annual development in the Octane Fitness Inc The Power Of Focus Case Study Analysis total possessions, shows that the business is rather efficient in adding worth to its assets through its revenues. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis concerning the circulation of total revenues of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Octane Fitness Inc The Power Of Focus Case Study Help organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Octane Fitness Inc The Power Of Focus Case Study Solution includes the issues of ecological 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 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 Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered 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 brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Octane Fitness Inc The Power Of Focus Case Study Solution consist of the suppliers of the paper for releasing files. 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 Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Octane Fitness Inc The Power Of Focus Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry growth. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of risk for the business. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first gathers the data associated with the customer demand, the potential markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business must decide one potential sector for its initial offering. It should gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company need to opt for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a threat to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
