Please Stop Working So Hard Case Study Solution and Analysis
Intro
Please Stop Working So Hard Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become 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.
Critical Issues
Although, Please Stop Working So Hard Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Please Stop Working So Hard Case Study Help has specific strengths that can be used to minimize the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Please Stop Working So Hard Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weak points of Please Stop Working So Hard Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Please Stop Working So Hard Case Study Help as well, however the development could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular dangers to Please Stop Working So Hard Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Please Stop Working So Hard Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. Nevertheless, the general financial efficiency of the company could be examined by using the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Please Stop Working So Hard Case Study Analysis is growing and the company is quite effective in bring in a a great deal of clients at a possible cost.
Together with it, the 2nd chart which reveals the annual growth in the Please Stop Working So Hard Case Study Analysis total assets, reveals that the business is quite effective in including value to its assets through its profits. The development in possessions reveals that the overall value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis relating to the circulation of overall earnings of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Please Stop Working So Hard Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Please Stop Working So Hard Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Please Stop Working So Hard Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Please Stop Working So Hard Case Study Help includes the concerns of environmental 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Please Stop Working So Hard Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Please Stop Working So Hard Case Study Analysis include;.
• Chemical Market 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Please Stop Working So Hard Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition 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 business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market development. Therefore, introduction of digital publishing could prove to be an instant solution with low quantity of risk for the company. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first collects the information related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a threat to the company's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
