Prediction Markets New Tool For Strategic Decision Making Case Study Solution and Analysis
Intro
Prediction Markets New Tool For Strategic Decision Making Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing info and communication services. Major business segments of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Prediction Markets New Tool For Strategic Decision Making Case Study Solution has actually become a specialized info provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Prediction Markets New Tool For Strategic Decision Making Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized 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
Prediction Markets New Tool For Strategic Decision Making Case Study Solution has certain strengths that can be utilized to lower the dangers, conquer the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Prediction Markets New Tool For Strategic Decision Making Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the business to consider numerous development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Prediction Markets New Tool For Strategic Decision Making Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Prediction Markets New Tool For Strategic Decision Making Case Study Solution as well, however the development could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually posed specific dangers to Prediction Markets New Tool For Strategic Decision Making Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Prediction Markets New Tool For Strategic Decision Making Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly total incomes of Prediction Markets New Tool For Strategic Decision Making Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is quite efficient in bring in a big number of clients at a possible rate.
Along with it, the second chart which reveals the yearly development in the Prediction Markets New Tool For Strategic Decision Making Case Study Analysis overall possessions, shows that the company is quite efficient in including value to its possessions through its profits. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the circulation of overall earnings of the company. Huge 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 could move towards other company sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Prediction Markets New Tool For Strategic Decision Making Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Prediction Markets New Tool For Strategic Decision Making Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Prediction Markets New Tool For Strategic Decision Making Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable 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 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Prediction Markets New Tool For Strategic Decision Making Case Study Solution include the providers 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 Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Prediction Markets New Tool For Strategic Decision Making Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Prediction Markets New Tool For Strategic Decision Making Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 company sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an instant option to prevent the declining market development. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should initially collects the information related to the consumer need, the possible markets, the government policies and the data related to the rivals provided in the market. After that, the company should decide one potential sector for its initial offering. It ought to collect research that how it could distinguish its digital publishing from the existing rivals' items. The steps above the business need to go for the preliminary offering. If the preliminary offering proves a success, the company should opt for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a threat to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
