Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution and Analysis
Introduction
Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and communication services. Significant company sectors of the company include; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports and so on. Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis has become a specialized info supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in basic and Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several concerns 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 capabilities of the company could be made use of 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
Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Help has particular strengths that can be made use of to lower the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong financial position enables the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restrictions for the business in implementing its development program. The weak points of Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution too, but the growth could be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular hazards to Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The general financial performance of the company might be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis is growing and the business is rather effective in attracting a a great deal of customers at a potential cost.
In addition to it, the 2nd graph which shows the yearly growth in the Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution overall possessions, reveals that the company is quite effective in including worth to its assets through its earnings. The growth in properties reveals that the overall value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the distribution of total earnings of the company. Major part of the profits 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 company sections with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies related to the import of books impact the overall business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis consists of 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 must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a major concentrate on instructional publications. CIP serves 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 Patagonia Driving Sustainable Innovation By Embracing Tensions 2 Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the decreasing market growth. For that reason, introduction of digital publishing might show to be an immediate option with low amount of threat for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the customer demand, the possible markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term presence, however the situation can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
