Pintura Corporation The Lena Launch Decision Case Study Solution and Analysis
Intro
Pintura Corporation The Lena Launch Decision Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Pintura Corporation The Lena Launch Decision Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Pintura Corporation The Lena Launch Decision Case Study Analysis has specific strengths that can be utilized to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Pintura Corporation The Lena Launch Decision Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the company to consider several development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Pintura Corporation The Lena Launch Decision Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Pintura Corporation The Lena Launch Decision Case Study Help as well, but the development might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually presented certain hazards to Pintura Corporation The Lena Launch Decision Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Pintura Corporation The Lena Launch Decision Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual overall earnings of Pintura Corporation The Lena Launch Decision Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible rate.
Together with it, the 2nd graph which shows the yearly development in the Pintura Corporation The Lena Launch Decision Case Study Analysis total possessions, shows that the business is quite effective in adding value to its assets through its earnings. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis relating to the distribution of total incomes of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the current 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 could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Pintura Corporation The Lena Launch Decision Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Pintura Corporation The Lena Launch Decision Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful products etc. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Pintura Corporation The Lena Launch Decision Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Pintura Corporation The Lena Launch Decision Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Pintura Corporation The Lena Launch Decision Case Study Solution 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 supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Pintura Corporation The Lena Launch Decision Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
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 company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining industry growth. Intro of digital publishing might show to be an instant service with low quantity of danger for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially collects the data associated with the customer demand, the potential markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the company ought to choose one prospective segment for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. If the initial offering shows a success, the business ought to choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a risk to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
