Show Me The Money B 2 Case Study Solution and Analysis
Introduction
Show Me The Money B 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Show Me The Money B 2 Case Study Analysis in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of 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
Show Me The Money B 2 Case Study Solution has certain strengths that can be made use of to reduce the hazards, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Show Me The Money B 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong monetary position enables the business to think about several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in executing its development program. The weak points of Show Me The Money B 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Show Me The Money B 2 Case Study Solution as well, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition 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 vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed specific dangers to Show Me The Money B 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Show Me The Money B 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal 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 particular strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the yearly total earnings of Show Me The Money B 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of customers at a possible rate.
Together with it, the second chart which reveals the yearly growth in the Show Me The Money B 2 Case Study Analysis overall possessions, shows that the company is rather efficient in including worth to its properties through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the circulation of total profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful materials and so on. China has the greatest population worldwide with a high population development, revealing the increasing variety of consumers of the Show Me The Money B 2 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Show Me The Money B 2 Case Study Solution includes the concerns of environmental communities 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Show Me The Money B 2 Case Study Solution include the suppliers 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Show Me The Money B 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Show Me The Money B 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing market growth. Introduction of digital publishing could prove to be an instant option with low amount of threat for the company. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the data related to the customer need, the potential markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
