Odesk Changing How The World Works Case Study Solution and Analysis
Introduction
Odesk Changing How The World Works Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Odesk Changing How The World Works Case Study Help in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement 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 important experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Odesk Changing How The World Works Case Study Help has particular strengths that can be used to decrease the threats, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Odesk Changing How The World Works Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Odesk Changing How The World Works Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting Odesk Changing How The World Works Case Study Analysis too, but the development might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to Odesk Changing How The World Works Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Odesk Changing How The World Works Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly total earnings of Odesk Changing How The World Works Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
In addition to it, the 2nd chart which shows the yearly growth in the Odesk Changing How The World Works Case Study Help overall possessions, shows that the business is quite effective in adding worth to its assets through its profits. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis concerning the circulation of total profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting Odesk Changing How The World Works Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Odesk Changing How The World Works Case Study Solution in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies connected to the import of books impact the total organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional 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 include the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Odesk Changing How The World Works Case Study Help includes the concerns of ecological neighborhoods over the use 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 harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry 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 providers of the Odesk Changing How The World Works Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Odesk Changing How The World Works Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in different market segments, with a major focus on educational publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Odesk Changing How The World Works Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. 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
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors 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 company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. Introduction of digital publishing could prove to be an immediate option with low quantity of danger for the business. However, the company might likewise 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 business must initially collects the information connected to the customer demand, the possible markets, the government policies and the data associated with the rivals presented in the market. After that, the company must choose one prospective sector for its preliminary offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' items. After all the steps above the company need to choose the initial offering. If the initial offering proves a success, the business ought to choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
