Pintura Corporation The Lena Launch Decision 2 Case Study Solution and Analysis
Pintura Corporation The Lena Launch Decision 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Pintura Corporation The Lena Launch Decision 2 Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Pintura Corporation The Lena Launch Decision 2 Case Study Analysis has certain strengths that can be made use of to lower the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Pintura Corporation The Lena Launch Decision 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position permits the business to think about numerous advancement opportunities without any worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Pintura Corporation The Lena Launch Decision 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is declining given that 2008, affecting Pintura Corporation The Lena Launch Decision 2 Case Study Solution as well, but the growth might be revived by availing specific chances provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competitors in the publishing industry has posed particular threats to Pintura Corporation The Lena Launch Decision 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Pintura Corporation The Lena Launch Decision 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall earnings of Pintura Corporation The Lena Launch Decision 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in bring in a large number of clients at a potential cost.
In addition to it, the second graph which shows the yearly development in the Pintura Corporation The Lena Launch Decision 2 Case Study Solution total properties, shows that the company is rather effective in including worth to its assets through its earnings. The growth in possessions reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of total profits of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown 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 could be performed to learn the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Pintura Corporation The Lena Launch Decision 2 Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials and so on. China has the highest population in the world with a high population development, showing the increasing number of customers of the Pintura Corporation The Lena Launch Decision 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting Pintura Corporation The Lena Launch Decision 2 Case Study Help consists of the issues of ecological communities over the usage 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 needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Pintura Corporation The Lena Launch Decision 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Pintura Corporation The Lena Launch Decision 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Pintura Corporation The Lena Launch Decision 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items 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 achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining market growth. Introduction of digital publishing might show to be an immediate option with low amount of danger for the company. The company might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the consumer need, the potential markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary 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.
The development of the publishing industry is decreasing since 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.