Olympic Rent A Car 3 Case Study Solution and Analysis
Olympic Rent A Car 3 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing info and communication services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Olympic Rent A Car 3 Case Study Analysis has ended up being a specialized information company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and Olympic Rent A Car 3 Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 important experience, technical resources and the capabilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Olympic Rent A Car 3 Case Study Solution has certain strengths that can be used to reduce the hazards, get rid of the weakness and avail the chances. Strengths of CMP are offered 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 cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position enables the business to think about several advancement opportunities without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Olympic Rent A Car 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining considering that 2008, affecting Olympic Rent A Car 3 Case Study Solution as well, but the growth could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing 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 reliance over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain hazards to Olympic Rent A Car 3 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Olympic Rent A Car 3 Case Study Analysis 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 competitors can get a strong customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the risk of losing the client base.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly overall revenues of Olympic Rent A Car 3 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a possible price.
In addition to it, the 2nd graph which reveals the annual development in the Olympic Rent A Car 3 Case Study Help overall properties, reveals that the business is rather effective in including value to its assets through its profits. The growth in assets shows that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis relating to the distribution of overall revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential development to achieve its future development objective.
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Olympic Rent A Car 3 Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting Olympic Rent A Car 3 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the digital libraries on certain websites. The altering consumer choices towards digital learning increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Olympic Rent A Car 3 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 requires high quality documents at competitive rates.
CMP runs in an extremely competitive market with the existence of large number of competitors. Nevertheless, the business 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 Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market segments, with a significant concentrate on educational publications. CIP serves as a hazard for CMP as it might 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 3 Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Olympic Rent A Car 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
As the choices are moving towards digital publishing and the business require an instant option to prevent the declining market growth. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to first gathers the data related to the customer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.