Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution and Analysis
Introduction
Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing information and communication services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major products consist of books, regulars, online media, exhibitions, research reports and so on. Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution has actually become a specialized information supplier and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution has particular strengths that can be used to minimize the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the business to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help too, however the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has posed particular hazards to Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be computed. The overall financial performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help is growing and the company is rather effective in drawing in a large number of consumers at a possible rate.
In addition to it, the second chart which reveals the yearly development in the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution overall possessions, reveals that the business is quite efficient in adding worth to its assets through its profits. The growth in assets reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis concerning the circulation of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset 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 Party of China. It could be stated that the total political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the total company at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help consists of the issues of environmental 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 utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the files provided in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers 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 likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major focus on instructional publications. CIP functions as a danger 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 marketplace share of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an immediate option to avoid the declining industry development. For that reason, intro of digital publishing might prove to be an immediate solution with low quantity of risk for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer need, the possible markets, the government regulations and the information associated with the competitors provided in the market. After that, the business must choose one possible segment for its preliminary offering. It needs to collect research that how it could distinguish its digital publishing from the existing rivals' items. After all the actions above the company need to opt for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a risk to the company's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
