Olympic Rent A Car 2 Case Study Solution and Analysis
Olympic Rent A Car 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Olympic Rent A Car 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
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 circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Olympic Rent A Car 2 Case Study Solution has particular strengths that can be used to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Olympic Rent A Car 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the business to think about a number of advancement chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase constraints for the company in implementing its development program. The weak points of Olympic Rent A Car 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways 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 strategies to avoid its reliance over the Chinese markets to achieve long term development.
The growth of the publishing industry is decreasing given that 2008, impacting Olympic Rent A Car 2 Case Study Solution as well, but the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific hazards to Olympic Rent A Car 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Olympic Rent A Car 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the hazard of losing the client base.
The business has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the general financial performance of the business might be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Olympic Rent A Car 2 Case Study Analysis is growing and the business is rather efficient in attracting a large number of consumers at a possible price.
Together with it, the 2nd chart which shows the yearly growth in the Olympic Rent A Car 2 Case Study Help overall assets, reveals that the company is quite effective in including worth to its properties through its earnings. The growth in possessions shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the distribution of total profits of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future development goal.
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of the people 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. It could be stated that the overall political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Olympic Rent A Car 2 Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect 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. However, China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative products and so on. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Olympic Rent A Car 2 Case Study Help. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Olympic Rent A Car 2 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Olympic Rent A Car 2 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Olympic Rent A Car 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market segments, with a significant focus on instructional publications. CIP acts as a risk 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 marketplace share of Olympic Rent A Car 2 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an instant option to prevent the declining market growth. For that reason, introduction of digital publishing could show to be an immediate service with low amount of threat for the business. The company might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information related to the customer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining given that 2008, revealing a danger to the business's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.