Olympian Competition Bidding For Olympic Television Rights Case Study Solution and Analysis
Intro
Olympian Competition Bidding For Olympic Television Rights Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and Olympian Competition Bidding For Olympic Television Rights Case Study Solution in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Olympian Competition Bidding For Olympic Television Rights Case Study Analysis has specific strengths that can be made use of to lower the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Olympian Competition Bidding For Olympic Television Rights Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong monetary position enables the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Olympian Competition Bidding For Olympic Television Rights Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Olympian Competition Bidding For Olympic Television Rights Case Study Help as well, however the development might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has posed specific risks to Olympian Competition Bidding For Olympic Television Rights Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Olympian Competition Bidding For Olympic Television Rights Case Study Help due to the customer shift towards digital libraries.
• The presence 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 utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total revenues of Olympian Competition Bidding For Olympic Television Rights Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a large number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the annual growth in the Olympian Competition Bidding For Olympic Television Rights Case Study Solution overall properties, shows that the company is quite effective in adding value to its assets through its revenues. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis relating to the distribution of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the efficiency of the business and the current 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 might have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Olympian Competition Bidding For Olympic Television Rights Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Olympian Competition Bidding For Olympic Television Rights Case Study Help consist of the providers 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.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Olympian Competition Bidding For Olympic Television Rights Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Olympian Competition Bidding For Olympic Television Rights Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry development. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to first collects the data related to the consumer demand, the possible markets, the federal government guidelines and the data connected to the competitors presented in the market. After that, the business ought to decide one prospective section for its initial offering. It must gather research that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the business ought to opt for the initial offering. If the initial offering shows a success, the business should choose the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a threat to the business's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
