Seven Common Mental Money Mistakes Case Study Solution and Analysis
Introduction
Seven Common Mental Money Mistakes Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and Seven Common Mental Money Mistakes Case Study Solution in specific. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions 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 company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Seven Common Mental Money Mistakes Case Study Help has particular strengths that can be utilized to decrease the risks, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Seven Common Mental Money Mistakes Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position enables the business to think about several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weaknesses of Seven Common Mental Money Mistakes Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Seven Common Mental Money Mistakes Case Study Analysis as well, however the development could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has posed certain dangers to Seven Common Mental Money Mistakes Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Seven Common Mental Money Mistakes Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be determined. However, the overall monetary performance of the business might be evaluated by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Seven Common Mental Money Mistakes Case Study Help is growing and the company is rather efficient in drawing in a a great deal of consumers at a possible price.
Along with it, the second graph which shows the yearly development in the Seven Common Mental Money Mistakes Case Study Help total possessions, reveals that the business is quite efficient in including value to its assets through its earnings. The growth in assets shows that the overall value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis regarding the circulation of overall revenues of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Seven Common Mental Money Mistakes Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Seven Common Mental Money Mistakes Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the general company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Seven Common Mental Money Mistakes Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition 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. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Seven Common Mental Money Mistakes 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry 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 files at competitive costs.
Competitors 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 highest market share in the Chinese publishing market. Major competitors of Seven Common Mental Money Mistakes Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in different market segments, with a significant focus on instructional publications. CIP serves 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 could wean the marketplace share of Seven Common Mental Money Mistakes Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections 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 internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing industry development. For that reason, introduction of digital publishing might show to be an immediate solution with low amount of risk for the business. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially gathers the information related to the consumer demand, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
