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Olympus B Case Study Solution and Analysis


Intro

Olympus B Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing info and interaction services. Major service segments of the business consist of; books, regulars, consultancy and distribution. The company has a large product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Olympus B Case Study Solution has ended up being a specialized information service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Important Issues

CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing market in general and Olympus B Case Study Help in specific. These factors include;

• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
The improvement of the macro markets have raised numerous 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 business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Olympus B Case Study Analysis has particular strengths that can be made use of to reduce the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Olympus B Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider numerous development opportunities with no fear of raising fund externally.

Weaknesses

Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Olympus B Case Study Help are given as follows;

• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining because 2008, impacting Olympus B Case Study Solution also, but the development could be revived by availing certain chances provided 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 client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.

Threats

The changing macro trends in the market and increasing competitors in the publishing industry has actually postured certain threats to Olympus B Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Olympus B Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to absence of information, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall revenues of Olympus B Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a potential price.

In addition to it, the second chart which reveals the annual development in the Olympus B Case Study Analysis overall assets, reveals that the company is rather effective in including worth to its properties through its earnings. The growth in assets reveals that the total value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).

Another monetary analysis of the business utilizing the given data might be the analysis regarding the circulation of total profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential growth to attain its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Olympus B Case Study Solution organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.

Social and Demographical.

The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Olympus B Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.

Legal.

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 Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.

Risk of New Entrants.

Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.

Threat of Substitution.

Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the danger of substitution for the industry.

Competitive Competition.

Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Olympus B Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.

Rivals Analysis.

CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Olympus B Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in various market segments, with a major concentrate on educational publications. CIP functions as a threat 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 Olympus B Case Study Solution quickly in the present market scenario.

Posts and telecommunication Press (PTP).

It was also founded in the very same duration as Olympus B Case Study Solution and CIP. It is also one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.

Suggestions

With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market development. Intro of digital publishing could show to be an immediate solution with low quantity of danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the information related to the customer demand, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining since 2008, revealing a risk to the business's long term presence, but the situation can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.

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