Pitching Business Opportunities Case Study Solution and Analysis
Introduction
Pitching Business Opportunities Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Pitching Business Opportunities Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Pitching Business Opportunities Case Study Analysis has certain strengths that can be made use of to decrease the threats, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Pitching Business Opportunities Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position enables the company to consider numerous advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Pitching Business Opportunities Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, 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 dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting Pitching Business Opportunities Case Study Help as well, however the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured particular risks to Pitching Business Opportunities Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Pitching Business Opportunities Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual total earnings of Pitching Business Opportunities Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in attracting a big number of clients at a prospective cost.
Together with it, the second graph which reveals the yearly growth in the Pitching Business Opportunities Case Study Analysis overall properties, shows that the business is rather efficient in including worth to its properties through its profits. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the distribution of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a prospective growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Pitching Business Opportunities Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Pitching Business Opportunities Case Study Solution includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized 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 guidelines 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.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective 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 huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the digital libraries on particular sites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Pitching Business Opportunities Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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 prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence 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 competitors of Pitching Business Opportunities Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Pitching Business Opportunities Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially collects the data connected to the consumer demand, the possible markets, the federal government policies and the data connected to the rivals provided in the market. After that, the company needs to decide one prospective sector for its preliminary offering. It must gather research that how it might distinguish its digital publishing from the existing rivals' items. The steps above the business must go for the preliminary offering. If the initial offering proves a success, the business must opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
