Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution and Analysis
Introduction
Parsons Brinckerhoff The Second Avenue Subway A Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Parsons Brinckerhoff The Second Avenue Subway A Case Study Help has specific strengths that can be utilized to lower the threats, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Parsons Brinckerhoff The Second Avenue Subway A Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to consider several advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, affecting Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution too, but the development might be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has postured specific threats to Parsons Brinckerhoff The Second Avenue Subway A Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The total financial efficiency of the business could be examined by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Parsons Brinckerhoff The Second Avenue Subway A Case Study Help is growing and the company is rather efficient in attracting a a great deal of customers at a possible price.
Together with it, the second graph which shows the annual growth in the Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution total assets, shows that the business is quite effective in including value to its assets through its incomes. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the distribution of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Parsons Brinckerhoff The Second Avenue Subway A Case Study Solution business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Parsons Brinckerhoff The Second Avenue Subway A Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the general company at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the Parsons Brinckerhoff The Second Avenue Subway A Case Study Help. Nevertheless, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Parsons Brinckerhoff The Second Avenue Subway A Case Study Analysis consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Parsons Brinckerhoff The Second Avenue Subway A Case Study Analysis include the suppliers of the paper for releasing 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.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Parsons Brinckerhoff The Second Avenue Subway A 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 could 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Parsons Brinckerhoff The Second Avenue Subway A Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the declining market growth. Intro of digital publishing could show to be an immediate service with low amount of risk for the company. 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 company needs to initially collects the data related to the customer need, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a hazard to the company's long term presence, however the scenario can be managed by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
