Olympic Rent A Car Case Study Solution and Analysis
Olympic Rent A Car Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing information and interaction services. Significant organisation sections of the company include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. Olympic Rent A Car Case Study Solution has actually ended up being a specialized info company and a big thorough Science and Innovation publishing company 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 trends and forces bring specific difficulties to the publishing industry in general and Olympic Rent A Car Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Olympic Rent A Car Case Study Analysis has particular strengths that can be made use of to minimize the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Olympic Rent A Car Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position permits the company to consider a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the company has particular weak points which might increase constraints for the company in executing its advancement program. The weak points of Olympic Rent A Car Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is declining since 2008, affecting Olympic Rent A Car Case Study Help too, however the growth might be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific risks to Olympic Rent A Car Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Olympic Rent A Car Case Study Solution due to the customer shift towards virtual 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 rivals can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the consumer base.
Due to absence of data, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall profits of Olympic Rent A Car Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is rather effective in bring in a large number of consumers at a possible cost.
In addition to it, the 2nd graph which shows the annual development in the Olympic Rent A Car Case Study Analysis overall possessions, reveals that the business is quite efficient in including worth to its assets through its revenues. The growth in properties reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the circulation of overall profits of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future advancement objective.
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity 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 concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products etc. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Olympic Rent A Car Case Study Analysis. Nevertheless, the consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Olympic Rent A Car Case Study Solution includes the issues 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 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 first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Olympic Rent A Car Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 purchasers needs high quality documents at competitive rates.
CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Olympic Rent A Car Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a significant focus on instructional publications. CIP functions 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 might wean the market share of Olympic Rent A Car Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competitors 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 need of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining market development. The business could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the data connected to the customer need, the possible markets, the government policies and the data related to the competitors provided in the market. After that, the company ought to choose one potential section for its preliminary offering. It needs to gather research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company ought to choose the preliminary offering. If the initial offering proves a success, the business needs to choose the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.