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 become a specialized info service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Olympic Rent A Car 2 Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro 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 abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Olympic Rent A Car 2 Case Study Analysis has certain strengths that can be used to reduce the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Olympic Rent A Car 2 Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the company to think about several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its development program. The weak points of Olympic Rent A Car 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is declining because 2008, impacting Olympic Rent A Car 2 Case Study Analysis too, however the development could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
The changing macro trends in the market and increasing competition in the publishing market has posed certain risks to Olympic Rent A Car 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Olympic Rent A Car 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the threat of losing the consumer base.
The business has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the company could be evaluated by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Olympic Rent A Car 2 Case Study Help is growing and the business is quite efficient in drawing in a a great deal of consumers at a possible price.
Along with it, the 2nd chart which reveals the yearly growth in the Olympic Rent A Car 2 Case Study Help total assets, shows that the company is quite effective in including worth 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 incomes. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis concerning the circulation of overall profits of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a possible development to achieve its future advancement goal.
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful materials and so on. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Olympic Rent A Car 2 Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Olympic Rent A Car 2 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Olympic Rent A Car 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence 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 an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business 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 Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the business need an instant option to avoid the decreasing industry growth. The company might also consider 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 initially collects the information associated with the customer demand, the potential markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the company needs to decide one possible section for its preliminary offering. It must 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 opt for the preliminary offering. The business must go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining since 2008, showing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.