Re Think Ing Think The Electric Car Company Case Study Solution and Analysis
Intro
Re Think Ing Think The Electric Car Company Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and communication services. Major service sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items include books, regulars, online media, exhibits, research reports etc. Re Think Ing Think The Electric Car Company Case Study Help has become a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Re Think Ing Think The Electric Car Company Case Study Solution in specific. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Re Think Ing Think The Electric Car Company Case Study Analysis has particular strengths that can be utilized to reduce the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Re Think Ing Think The Electric Car Company Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position permits the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Re Think Ing Think The Electric Car Company Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Re Think Ing Think The Electric Car Company Case Study Solution as well, however the growth might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific threats to Re Think Ing Think The Electric Car Company Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Re Think Ing Think The Electric Car Company Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall monetary efficiency of the business could be examined by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Re Think Ing Think The Electric Car Company Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of customers at a prospective cost.
In addition to it, the second chart which shows the annual growth in the Re Think Ing Think The Electric Car Company Case Study Analysis overall properties, reveals that the business is quite efficient in adding worth to its possessions through its incomes. The growth in possessions reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the distribution of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Re Think Ing Think The Electric Car Company Case Study Help service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Re Think Ing Think The Electric Car Company Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Re Think Ing Think The Electric Car Company Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Re Think Ing Think The Electric Car Company Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market segments, with a significant concentrate on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Re Think Ing Think The Electric Car Company Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining market development. Therefore, intro of digital publishing might prove to be an instant option with low quantity of threat for the business. The company could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first collects the data related to the customer demand, the possible markets, the federal government guidelines and the data associated with the rivals presented in the market. After that, the business ought to choose one possible section for its preliminary offering. It ought to gather research study that how it could separate its digital publishing from the existing competitors' products. The steps above the business ought to go for the preliminary offering. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a danger to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
