Olympic Rent A Car 3 Case Study Solution and Analysis
Olympic Rent A Car 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing information and communication services. Significant organisation sections of the business include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibitions, research study reports etc. Olympic Rent A Car 3 Case Study Solution has actually become a specialized details service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Olympic Rent A Car 3 Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Olympic Rent A Car 3 Case Study Help has certain strengths that can be utilized to minimize the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Olympic Rent A Car 3 Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong financial position permits the company to think about several advancement chances with no worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase restrictions for the company in executing its advancement program. The weak points of Olympic Rent A Car 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is declining given that 2008, affecting Olympic Rent A Car 3 Case Study Help too, but the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular threats to Olympic Rent A Car 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Olympic Rent A Car 3 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry in addition to presence of high competition increases the hazard of losing the client base.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total profits of Olympic Rent A Car 3 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in drawing in a large number of customers at a prospective price.
In addition to it, the second chart which reveals the yearly development in the Olympic Rent A Car 3 Case Study Help overall assets, reveals that the company is quite efficient in adding worth to its assets through its revenues. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of total earnings of the business. Major 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 could move towards other organisation sections with a prospective growth to attain its future advancement objective.
PESTEL analysis could be carried out to discover the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Olympic Rent A Car 3 Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Olympic Rent A Car 3 Case Study Help. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Olympic Rent A Car 3 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices 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 consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Olympic Rent A Car 3 Case Study Help include 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 supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 purchasers needs high quality documents at competitive prices.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Olympic Rent A Car 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in various market sectors, with a major focus on educational publications. CIP serves as a risk 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 marketplace share of Olympic Rent A Car 3 Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Olympic Rent A Car 3 Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition 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 need of its items in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining market growth. Therefore, introduction of digital publishing might prove to be an immediate option with low quantity of threat for the business. Nevertheless, 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 must first gathers the data connected to the consumer demand, the prospective markets, the government guidelines and the data associated with the competitors presented in the market. After that, the business ought to choose one possible segment for its preliminary offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would be able to execute its digital publishing program.
The development of the publishing market is decreasing because 2008, showing a risk to the business's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.