On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Solution and Analysis
Introduction
On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing information and interaction services. Major organisation sections of the company consist of; books, regulars, consultancy and circulation. The business has a huge item portfolio and its major products include books, periodicals, online media, exhibitions, research study reports etc. On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis has ended up being a specialized info company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Solution has specific strengths that can be utilized to lower the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position allows the business to think about a number of development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis as well, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has positioned specific risks to On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be determined. The total financial efficiency of the business could be analyzed by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis is growing and the company is quite effective in bring in a large number of consumers at a potential cost.
Along with it, the 2nd chart which reveals the yearly growth in the On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Help total properties, shows that the company is quite efficient in adding value to its possessions through its incomes. The development in properties shows that the total value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis concerning the circulation of total earnings of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the digital libraries on specific sites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely 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. Significant rivals of On Two Wheels In Paris The Velib Bicycle Sharing Program Supplement Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item 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 business sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant service to avoid the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially gathers the data associated with the customer need, the prospective markets, the government guidelines and the data related to the competitors provided in the market. After that, the business ought to decide one possible segment for its preliminary offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the initial offering. If the initial offering proves a success, the business should choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a risk to the company's long term existence, however the situation can be managed by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
