Olympus B Case Study Solution and Analysis
Olympus B Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing information and communication services. Significant business segments of the business include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports etc. Olympus B Case Study Help has actually become a specialized details service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Olympus B Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Olympus B Case Study Analysis has certain strengths that can be utilized to lower the risks, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Olympus B Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the company to consider numerous development opportunities without any worry of raising fund externally.
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Olympus B Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional 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 plans to prevent its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is declining considering that 2008, affecting Olympus B Case Study Help as well, but the growth could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Olympus B Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Olympus B Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market along with existence of high competition increases the danger of losing the consumer base.
The business has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. The general financial efficiency of the company might be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Olympus B Case Study Help is growing and the company is quite efficient in drawing in a a great deal of customers at a possible cost.
In addition to it, the second chart which shows the yearly growth in the Olympus B Case Study Help total assets, shows that the business is rather efficient in adding value to its properties through its revenues. The development in properties shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the circulation of total revenues of the business. Huge 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 could move towards other company sections with a prospective growth to attain its future advancement goal.
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Olympus B Case Study Solution service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Olympus B Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful products and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Olympus B Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Ecological forces affecting Olympus B Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging 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 Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Olympus B Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Olympus B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a significant focus on academic publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Olympus B Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Olympus B Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competitors 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 demand of its products in the market.
As the choices are shifting towards digital publishing and the company need an immediate service to prevent the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should initially gathers the data related to the consumer need, the prospective markets, the federal government regulations and the information related to the competitors presented in the market. If the preliminary 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.
Although, the development of the publishing industry is declining because 2008, revealing a risk to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.