Retail Relay B Case Study Solution and Analysis
Intro
Retail Relay B Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and Retail Relay B Case Study Solution in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 business could be made use of 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
Retail Relay B Case Study Solution has certain strengths that can be made use of to lower the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Retail Relay B Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to think about several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Retail Relay B Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Retail Relay B Case Study Help too, however the development might be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually postured particular threats to Retail Relay B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Retail Relay B Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal 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 particular methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. The overall financial efficiency of the business could be evaluated by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Retail Relay B Case Study Analysis is growing and the company is rather effective in attracting a large number of customers at a possible rate.
Along with it, the second graph which reveals the annual growth in the Retail Relay B Case Study Analysis total assets, reveals that the company is quite efficient in including worth to its assets through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the distribution of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Retail Relay B Case Study Help. However, the consumer 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 changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Retail Relay B Case Study Help 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Retail Relay B Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Retail Relay B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in different market sections, with a major concentrate on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Retail Relay B Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market development. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should initially gathers the data related to the customer demand, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a threat to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The company could consider 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.
