Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution and Analysis
Parsons Brinckerhoff The Second Avenue Subway B Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and Parsons Brinckerhoff The Second Avenue Subway B Case Study Help in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions 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 made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Parsons Brinckerhoff The Second Avenue Subway B Case Study Help has certain strengths that can be made use of to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Parsons Brinckerhoff The Second Avenue Subway B Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its prior 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 risk and offer high worth to its clients.
• Strong financial position allows the company to consider numerous advancement chances with no worry of raising fund externally.
Together with the strengths, the business has specific weak points which could increase restrictions for the business in executing its development program. The weaknesses of Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is decreasing because 2008, impacting Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution also, but the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific dangers to Parsons Brinckerhoff The Second Avenue Subway B Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Parsons Brinckerhoff The Second Avenue Subway B Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall incomes of Parsons Brinckerhoff The Second Avenue Subway B Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in attracting a large number of consumers at a prospective cost.
Along with it, the 2nd graph which reveals the annual growth in the Parsons Brinckerhoff The Second Avenue Subway B Case Study Help overall properties, shows that the business is quite efficient in including worth to its assets through its earnings. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the distribution of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential development to accomplish its future advancement goal.
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution. Nevertheless, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces affecting Parsons Brinckerhoff The Second Avenue Subway B Case Study Solution includes the concerns of ecological neighborhoods 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 needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Parsons Brinckerhoff The Second Avenue Subway B Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry 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 files at competitive costs.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Parsons Brinckerhoff The Second Avenue Subway B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
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 market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Parsons Brinckerhoff The Second Avenue Subway B Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company require an instant solution to prevent the declining market development. Introduction of digital publishing could show to be an immediate service with low amount of risk for the company. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the information related to the customer need, the prospective markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, but the scenario can be controlled by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.