Olgc Finds Its Match B Case Study Solution and Analysis
Intro
Olgc Finds Its Match B Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Olgc Finds Its Match B Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Olgc Finds Its Match B Case Study Solution has specific strengths that can be made use of to lower the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Olgc Finds Its Match B Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position enables the company to consider several advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which might increase constraints for the company in executing its development program. The weak points of Olgc Finds Its Match B Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Olgc Finds Its Match B Case Study Help as well, however the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented certain threats to Olgc Finds Its Match B Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Olgc Finds Its Match B Case Study Analysis due to the customer 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 acquire a strong customer base by using certain techniques like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total incomes of Olgc Finds Its Match B Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a big number of clients at a possible rate.
Together with it, the second graph which shows the annual development in the Olgc Finds Its Match B Case Study Analysis total possessions, reveals that the company is rather effective in adding value to its assets through its earnings. The growth in possessions shows that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the distribution of total incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Olgc Finds Its Match B Case Study Analysis. However, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Olgc Finds Its Match B Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used 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. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Olgc Finds Its Match B Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Olgc Finds Its Match B 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 exact same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market segments, with a major concentrate on instructional publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Olgc Finds Its Match B Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 business sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant option to prevent the declining industry growth. Introduction of digital publishing could show to be an immediate service with low quantity of threat for the company. However, the business 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 company must initially collects the information associated with the consumer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. After that, the company ought to decide one prospective sector for its initial offering. It should gather research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business need to go for the initial offering. The company must go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a hazard to the company's long term existence, but the circumstance can be controlled by thinking about 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 threat of failure for entrance in the new markets.
