Paint Pen Inc 2 Case Study Solution and Analysis
Intro
Paint Pen Inc 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing information and communication services. Major business sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. Paint Pen Inc 2 Case Study Help has become a specialized details service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Paint Pen Inc 2 Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Paint Pen Inc 2 Case Study Solution has specific strengths that can be used to minimize the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Paint Pen Inc 2 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position allows the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Paint Pen Inc 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Paint Pen Inc 2 Case Study Analysis as well, however the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has actually presented particular risks to Paint Pen Inc 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Paint Pen Inc 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market along with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be computed. The total monetary efficiency of the company might be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Paint Pen Inc 2 Case Study Analysis is growing and the business is rather efficient in attracting a large number of customers at a possible price.
Along with it, the 2nd chart which shows the yearly development in the Paint Pen Inc 2 Case Study Help overall properties, reveals that the company is rather effective in adding value to its properties through its incomes. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the circulation of overall profits of the business. 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 company could move towards other company sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Paint Pen Inc 2 Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Paint Pen Inc 2 Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
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 Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Paint Pen Inc 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Paint Pen Inc 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market segments, with a significant concentrate on educational publications. 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 marketplace share of Paint Pen Inc 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Paint Pen Inc 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present 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 company segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant service to prevent the declining market development. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first gathers the data related to the customer need, the potential markets, the government regulations and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
