Online Book Store Management System Case Study Solution and Analysis
Intro
Online Book Store Management System Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Online Book Store Management System Case Study Solution in specific. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Online Book Store Management System Case Study Analysis has certain strengths that can be utilized to decrease the threats, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Online Book Store Management System Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to consider a number of development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of Online Book Store Management System Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Online Book Store Management System Case Study Analysis too, but the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer 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 huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has presented particular hazards to Online Book Store Management System Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital 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 presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be determined. However, the general financial performance of the business could be evaluated by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Online Book Store Management System Case Study Help is growing and the company is quite effective in drawing in a large number of clients at a prospective rate.
Together with it, the second graph which reveals the annual development in the Online Book Store Management System Case Study Help overall assets, shows that the business is quite effective in including worth to its properties through its profits. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the circulation of total earnings of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Online Book Store Management System Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the Online Book Store Management System Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Online Book Store Management System Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Online Book Store Management System Case Study Help consist of 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Online Book Store Management System Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major focus on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Online Book Store Management System Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Online Book Store Management System Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat 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 present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 business sectors to the new one can lead the company 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 prevent the declining industry growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data associated with the consumer need, the potential markets, the government policies and the information related to the competitors presented in the market. After that, the company should choose one possible section for its preliminary offering. It must gather research study that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the business should choose the preliminary offering. If the initial offering proves a success, the business should choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a threat to the company's long term presence, however the situation can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
