Osscube Leveraging Social Media Case Study Solution and Analysis
Osscube Leveraging Social Media Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large 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 house, however, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Osscube Leveraging Social Media Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Osscube Leveraging Social Media Case Study Help has certain strengths that can be made use of to reduce the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Osscube Leveraging Social Media Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the company to think about several development opportunities without any worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Osscube Leveraging Social Media Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is declining considering that 2008, impacting Osscube Leveraging Social Media Case Study Solution as well, but the development might be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce 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 decrease its reliance over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed particular risks to Osscube Leveraging Social Media Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Osscube Leveraging Social Media Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. However, the total financial performance of the business could be analyzed by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Osscube Leveraging Social Media Case Study Solution is growing and the business is quite efficient in attracting a large number of customers at a potential cost.
Along with it, the second chart which shows the annual development in the Osscube Leveraging Social Media Case Study Solution overall assets, reveals that the business is quite efficient in including worth to its properties through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis relating to the circulation of total profits of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a possible growth to achieve its future advancement goal.
PESTEL analysis could be conducted to find out the numerous external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Osscube Leveraging Social Media Case Study Help organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading useful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Osscube Leveraging Social Media Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Osscube Leveraging Social Media Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive rivalry in the publishing market 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. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Osscube Leveraging Social Media Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Osscube Leveraging Social Media Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competition 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 company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the decreasing market growth. Therefore, intro of digital publishing could prove to be an immediate solution with low amount of threat for the business. 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 item portfolio, the business must first collects the information related to the customer demand, the possible markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the company should decide one possible segment for its preliminary offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business need to go for the preliminary offering. If the initial offering proves a success, the company should opt for the other markets. In this way the business would be able to execute its digital publishing program.
The development of the publishing market is declining since 2008, showing a danger to the business's long term presence, but the situation can be managed by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.