Product Development At Opower Case Study Solution and Analysis
Product Development At Opower Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing information and communication services. Significant organisation segments of the company include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Product Development At Opower Case Study Help has actually ended up being a specialized info provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in general and Product Development At Opower Case Study Help in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Product Development At Opower Case Study Analysis has particular strengths that can be utilized to reduce the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Product Development At Opower Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the company to consider numerous development chances with no worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Product Development At Opower Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
The development of the publishing industry is decreasing because 2008, impacting Product Development At Opower Case Study Analysis as well, however the growth might be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has postured certain dangers to Product Development At Opower Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Product Development At Opower Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the risk of losing the consumer base.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The overall financial efficiency of the company could be examined by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Product Development At Opower Case Study Analysis is growing and the business is quite efficient in drawing in a large number of customers at a potential cost.
Together with it, the 2nd graph which shows the yearly growth in the Product Development At Opower Case Study Solution overall properties, reveals that the company is rather effective in adding worth to its assets through its profits. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the distribution of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to accomplish its future development objective.
PESTEL analysis could be conducted to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Product Development At Opower Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the total company at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Product Development At Opower Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Product Development At Opower Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the virtual libraries on specific sites. The altering consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Product Development At Opower Case Study Solution include the suppliers of the paper for publishing documents. 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 Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Product Development At Opower Case Study Analysis 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Product Development At Opower Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing market development. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing industry is declining considering that 2008, revealing a risk to the company's long term presence, but the scenario can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.