Olympian Competition Bidding For Olympic Television Rights Case Study Solution and Analysis
Olympian Competition Bidding For Olympic Television Rights Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing info and communication services. Significant business sectors of the company include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Olympian Competition Bidding For Olympic Television Rights Case Study Help has actually ended up being a specialized information service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Olympian Competition Bidding For Olympic Television Rights Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Olympian Competition Bidding For Olympic Television Rights Case Study Help has specific strengths that can be made use of to lower the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Olympian Competition Bidding For Olympic Television Rights Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position permits the business to consider several development opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restrictions for the business in executing its development program. The weak points of Olympian Competition Bidding For Olympic Television Rights Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
The development of the publishing industry is decreasing because 2008, affecting Olympian Competition Bidding For Olympic Television Rights Case Study Solution as well, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer 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 utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured specific threats to Olympian Competition Bidding For Olympic Television Rights Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Olympian Competition Bidding For Olympic Television Rights Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the hazard of losing the client base.
The business has a rather competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. Nevertheless, the general financial efficiency of the business might be analyzed by utilizing the graphs given up the case Appendices. It might be evaluated 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 demand of the items of Olympian Competition Bidding For Olympic Television Rights Case Study Help is growing and the company is rather efficient in attracting a a great deal of customers at a prospective rate.
In addition to it, the 2nd graph which shows the annual development in the Olympian Competition Bidding For Olympic Television Rights Case Study Analysis total assets, shows that the business is rather efficient in including worth to its properties through its earnings. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis regarding the circulation of overall profits of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible development to achieve its future advancement objective.
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Olympian Competition Bidding For Olympic Television Rights Case Study Analysis service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Olympian Competition Bidding For Olympic Television Rights Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences 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 altering consumer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Olympian Competition Bidding For Olympic Television Rights Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 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 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Olympian Competition Bidding For Olympic Television Rights Case Study Help 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 general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the buyers requires high quality documents at competitive rates.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Olympian Competition Bidding For Olympic Television Rights Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Olympian Competition Bidding For Olympic Television Rights Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant service to prevent the decreasing market growth. Introduction of digital publishing could show to be an immediate service with low quantity of risk for the company. However, the business could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to initially collects the information associated with the consumer demand, the possible markets, the government policies and the data related to the rivals provided in the market. After that, the business should choose one potential sector for its preliminary offering. It must collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the company should go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is declining because 2008, showing a risk to the company's long term existence, but the scenario can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.