Polar Sports Inc 2 Case Study Solution and Analysis
Polar Sports Inc 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Polar Sports Inc 2 Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Polar Sports Inc 2 Case Study Analysis has specific strengths that can be utilized to minimize the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Polar Sports Inc 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position permits the business to consider several development opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weak points which could increase restraints for the business in implementing its advancement program. The weak points of Polar Sports Inc 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, 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 needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The development of the publishing market is decreasing because 2008, impacting Polar Sports Inc 2 Case Study Analysis as well, however the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured certain dangers to Polar Sports Inc 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Polar Sports Inc 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the customer base.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly total profits of Polar Sports Inc 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a prospective price.
In addition to it, the second chart which shows the yearly development in the Polar Sports Inc 2 Case Study Solution overall properties, shows that the business is rather efficient in adding worth to its properties through its revenues. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the distribution of total revenues of the company. Major part of the earnings 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 segments with a potential growth to attain its future advancement goal.
PESTEL analysis might be performed to discover the various external forces impacting the performance 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).
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Polar Sports Inc 2 Case Study Solution organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Polar Sports Inc 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Ecological forces impacting Polar Sports Inc 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the hazard of substitution for the market.
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 competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Polar Sports Inc 2 Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Polar Sports Inc 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a major focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Polar Sports Inc 2 Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Polar Sports Inc 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing industry development. Intro of digital publishing might prove to be an instant solution with low amount of risk for the company. However, the company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the information related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is declining since 2008, revealing a threat to the business's long term presence, however the circumstance can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.