Olympic Rent A Car Case Study Solution and Analysis
Olympic Rent A Car Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Olympic Rent A Car Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 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 Case Study Analysis has specific strengths that can be used to minimize the dangers, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Olympic Rent A Car Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense using 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 threat and supply high worth to its clients.
• Strong financial position permits the company to consider numerous development chances with no worry of raising fund externally.
Together with the strengths, the company has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Olympic Rent A Car Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining considering that 2008, impacting Olympic Rent A Car Case Study Help as well, however the growth could be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain threats to Olympic Rent A Car Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Olympic Rent A Car Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal 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 utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market together with presence of high competition increases the risk of losing the customer base.
The business has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the general financial efficiency of the business could be evaluated by using the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of Olympic Rent A Car Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a prospective price.
Along with it, the 2nd graph which reveals the annual growth in the Olympic Rent A Car Case Study Analysis overall possessions, reveals that the company is rather effective in adding value to its possessions through its incomes. The development in properties reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis regarding the distribution of overall profits of the business. Major part of the earnings 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 company segments with a possible growth to accomplish its future advancement objective.
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general 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 growth, the customer's choices towards checking out useful products etc. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Olympic Rent A Car Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Olympic Rent A Car Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable 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 guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the virtual libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Olympic Rent A Car Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence 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. Major competitors of Olympic Rent A Car Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market segments, with a significant concentrate on educational publications. CIP functions as a hazard 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Olympic Rent A Car Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors 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 business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an immediate option to prevent the decreasing industry growth. Therefore, intro of digital publishing could show to be an instant option with low quantity of risk for the company. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first gathers the data related to the customer demand, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.