Online Book Store Management System Case Study Solution and Analysis
Online Book Store Management System Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing details and communication services. Significant business segments of the company include; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Online Book Store Management System Case Study Help has actually ended up being a specialized info service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Online Book Store Management System Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Online Book Store Management System Case Study Solution has certain strengths that can be made use of to reduce the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Online Book Store Management System Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong monetary position permits the business to think about several development chances without any fear of raising fund externally.
Together with the strengths, the business has specific weak points which could increase restrictions for the company in executing its development program. The weak points of Online Book Store Management System Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing market is declining since 2008, impacting Online Book Store Management System Case Study Help also, but the development might be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
The altering macro trends in the market and increasing competition in the publishing market has actually posed specific dangers to Online Book Store Management System Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Online Book Store Management System Case Study Analysis due to the consumer 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 get a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the hazard of losing the customer base.
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The general monetary efficiency of the company could be analyzed by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Online Book Store Management System Case Study Help is growing and the business is quite efficient in attracting a large number of clients at a prospective price.
Together with it, the 2nd graph which shows the annual development in the Online Book Store Management System Case Study Help total possessions, reveals that the business is rather effective in adding value to its assets through its profits. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis concerning the distribution of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible growth to attain its future development goal.
PESTEL analysis could be performed to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Online Book Store Management System Case Study Help business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Online Book Store Management System Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Online Book Store Management System Case Study Analysis includes 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 damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to 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 Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Online Book Store Management System Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Online Book Store Management System Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market sectors, with a major focus on academic publications. CIP acts as a hazard 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 Online Book Store Management System Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the decreasing market development. The company might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data related to the consumer need, the potential markets, the federal government policies and the data related to the rivals presented in the market. After that, the business must choose one prospective sector for its preliminary offering. It should gather research study that how it might distinguish its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. If the preliminary offering proves a success, the business should opt for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a danger to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company might consider 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 brand-new markets.