Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution and Analysis
Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. 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 methods
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis has certain strengths that can be used to reduce the risks, conquer the weakness and avail the chances. Strengths of CMP are given 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 business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to consider numerous advancement opportunities with no worry of raising fund externally.
Together with the strengths, the business has specific weak points which could increase restraints for the business in executing its development 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 technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
The development of the publishing industry is declining given that 2008, affecting Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned specific threats to Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competition increases the threat of losing the client base.
The business has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. However, the total monetary performance of the business might be evaluated by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis is growing and the business is rather effective in attracting a large number of customers at a potential cost.
Along with it, the second chart which reveals the annual development in the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis overall assets, reveals that the business is quite efficient in adding value to its assets through its profits. The development in assets shows that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis regarding the circulation of total profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a prospective growth to accomplish its future advancement objective.
PESTEL analysis could be carried out to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided 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 general and the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the total business at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces impacting Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay 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 needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The presence 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major concentrate on instructional publications. CIP acts as a danger 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 marketplace share of Quantitative Analysis Of Competitive Position Customer Demand And Willingness To Pay Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal 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 require an immediate solution to prevent the declining industry development. Therefore, intro of digital publishing might prove to be an instant solution with low quantity of threat for the business. The company might 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 business needs to initially gathers the information connected to the consumer demand, the possible markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company needs to decide one potential segment for its preliminary offering. It ought to gather research that how it could separate its digital publishing from the existing rivals' products. The steps above the business need to go for the preliminary offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a risk to the company's long term presence, however the situation can be managed by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.