Pintura Corporation The Lena Launch Decision 2 Case Study Solution and Analysis
Introduction
Pintura Corporation The Lena Launch Decision 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and communication services. Significant company sections of the company include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Pintura Corporation The Lena Launch Decision 2 Case Study Solution has ended up being a specialized info service provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and Pintura Corporation The Lena Launch Decision 2 Case Study Help in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions 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 abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pintura Corporation The Lena Launch Decision 2 Case Study Solution has specific strengths that can be made use of to decrease the dangers, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Pintura Corporation The Lena Launch Decision 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to consider numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Pintura Corporation The Lena Launch Decision 2 Case Study Solution are offered as follows;
• Despite of being a science and technology 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 must propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Pintura Corporation The Lena Launch Decision 2 Case Study Help also, but the development could be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular threats to Pintura Corporation The Lena Launch Decision 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Pintura Corporation The Lena Launch Decision 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The general financial efficiency of the business could be analyzed by utilizing the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Pintura Corporation The Lena Launch Decision 2 Case Study Analysis is growing and the company is quite effective in attracting a a great deal of customers at a potential cost.
Together with it, the 2nd chart which shows the yearly development in the Pintura Corporation The Lena Launch Decision 2 Case Study Analysis overall possessions, shows that the business is rather effective in including worth to its assets through its earnings. The development in possessions shows that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the distribution of overall revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Pintura Corporation The Lena Launch Decision 2 Case Study Help. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Pintura Corporation The Lena Launch Decision 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on specific websites. The changing customer preferences towards digital knowing increase the threat of alternative 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 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 providers of the Pintura Corporation The Lena Launch Decision 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market 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 documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. 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 consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established 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 one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant option to prevent the decreasing market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should initially collects the data connected to the customer demand, the prospective markets, the federal government guidelines and the information related to the rivals presented in the market. After that, the company must decide one potential segment for its preliminary offering. It must gather research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the business should opt for the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a threat to the company's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
