Odesk Changing How The World Works Case Study Solution and Analysis
Odesk Changing How The World Works Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and interaction services. Significant organisation segments of the business consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. Odesk Changing How The World Works Case Study Solution has actually ended up being a specialized details provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Odesk Changing How The World Works Case Study Solution in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement 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 strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Odesk Changing How The World Works Case Study Analysis has particular strengths that can be used to reduce the hazards, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Odesk Changing How The World Works Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to think about a number of advancement chances without any worry of raising fund externally.
Together with the strengths, the company has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Odesk Changing How The World Works Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the development of the publishing market is decreasing since 2008, affecting Odesk Changing How The World Works Case Study Help also, but the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned specific risks to Odesk Changing How The World Works Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Odesk Changing How The World Works Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the customer base.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The overall financial performance of the business might be examined by utilizing the charts offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Odesk Changing How The World Works Case Study Help is growing and the company is quite efficient in bring in a a great deal of consumers at a prospective rate.
Along with it, the 2nd chart which reveals the yearly development in the Odesk Changing How The World Works Case Study Help total possessions, reveals that the company is rather effective in adding value to its possessions through its earnings. The growth in possessions shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the circulation of overall earnings of the company. Huge 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 business could move towards other organisation sectors with a possible growth to achieve its future development objective.
PESTEL analysis could be performed to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Odesk Changing How The World Works Case Study Solution business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Odesk Changing How The World Works Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the general company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative materials and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of consumers of the Odesk Changing How The World Works Case Study Analysis. Nevertheless, the customer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Odesk Changing How The World Works Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Odesk Changing How The World Works Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in an extremely competitive industry with the existence 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 Odesk Changing How The World Works Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate option to prevent the declining industry growth. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must initially gathers the information related to the customer need, the possible markets, the federal government guidelines and the information connected to the rivals presented in the market. After that, the company must decide one potential sector for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. If the preliminary offering proves a success, the business ought to opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.