Rent The Runway Case Study Solution and Analysis
Introduction
Rent The Runway Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting information, processing info and communication services. Significant organisation segments of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Rent The Runway Case Study Help has actually become a specialized information supplier and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Rent The Runway Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the business 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
Rent The Runway Case Study Solution has particular strengths that can be utilized to decrease the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Rent The Runway Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position permits the business to think about numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Rent The Runway Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Rent The Runway Case Study Solution too, but the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also 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 minimize its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has posed particular dangers to Rent The Runway Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Rent The Runway Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the general monetary performance of the business might be analyzed by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Rent The Runway Case Study Analysis is growing and the company is quite efficient in attracting a large number of clients at a potential price.
Along with it, the second chart which reveals the yearly development in the Rent The Runway Case Study Analysis overall properties, shows that the company is quite efficient in adding value to its possessions through its revenues. The development in assets shows that the total worth of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis relating to the circulation of overall incomes of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Rent The Runway Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Rent The Runway Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Rent The Runway Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival 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 terms of service scale. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining industry development. Therefore, intro of digital publishing might prove to be an immediate service with low quantity of threat for the business. However, the company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business needs to first gathers the data associated with the customer need, the prospective markets, the federal government policies and the information associated with the competitors provided in the market. After that, the company must choose one possible sector for its preliminary offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' products. After all the actions above the business should choose the initial offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
