One Fine Stay Case Study Solution and Analysis
Introduction
One Fine Stay Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting details, processing info and communication services. Significant business sections of the business include; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. One Fine Stay Case Study Solution has actually ended up being a specialized info company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, One Fine Stay Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 business could be utilized 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
One Fine Stay Case Study Analysis has specific strengths that can be used to decrease the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of One Fine Stay Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to consider several advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of One Fine Stay Case Study Solution are provided 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 growth. It needs to propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting One Fine Stay Case Study Help also, but the development could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually presented specific dangers to One Fine Stay Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of One Fine Stay Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be calculated. The general monetary efficiency of the company might be examined by utilizing the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of One Fine Stay Case Study Help is growing and the company is quite effective in drawing in a a great deal of clients at a potential price.
Along with it, the 2nd graph which shows the annual growth in the One Fine Stay Case Study Solution total properties, shows that the company is quite efficient in adding worth to its properties through its earnings. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis regarding the circulation of total profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the One Fine Stay Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting One Fine Stay Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the One Fine Stay Case Study Solution consist of the suppliers 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.
Haggling 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 market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of One Fine Stay Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as One Fine Stay Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the declining market development. For that reason, introduction of digital publishing could prove to be an instant service with low quantity of threat for the business. However, the business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must first collects the information associated with the customer demand, the potential markets, the government guidelines and the data associated with the rivals provided in the market. After that, the business ought to decide one prospective segment for its preliminary offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the company need to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a risk to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
