Play On Building The Entrepreneurial Opportunity Case Study Solution and Analysis
Introduction
Play On Building The Entrepreneurial Opportunity Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Play On Building The Entrepreneurial Opportunity Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions 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 business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Play On Building The Entrepreneurial Opportunity Case Study Help has particular strengths that can be used to minimize the threats, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Play On Building The Entrepreneurial Opportunity Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the business to think about several development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Play On Building The Entrepreneurial Opportunity Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting Play On Building The Entrepreneurial Opportunity Case Study Solution as well, however the development could be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured particular threats to Play On Building The Entrepreneurial Opportunity Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Play On Building The Entrepreneurial Opportunity Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific techniques like aggressive promo, 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 customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total earnings of Play On Building The Entrepreneurial Opportunity Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a potential cost.
In addition to it, the 2nd graph which shows the yearly growth in the Play On Building The Entrepreneurial Opportunity Case Study Help overall possessions, shows that the company is rather effective in including worth to its possessions through its profits. The development in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the distribution of overall incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Play On Building The Entrepreneurial Opportunity Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the general business at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Play On Building The Entrepreneurial Opportunity Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Play On Building The Entrepreneurial Opportunity 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 needed 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 first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Play On Building The Entrepreneurial Opportunity Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider 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 files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence 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. Major competitors of Play On Building The Entrepreneurial Opportunity Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Play On Building The Entrepreneurial Opportunity Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant option to prevent the declining industry development. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of risk for the company. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the information associated with the consumer demand, the possible markets, the government guidelines and the data connected to the competitors provided in the market. After that, the business must choose one potential sector for its preliminary offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business should go for the preliminary offering. The company should 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 decreasing because 2008, revealing a risk to the business's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
