Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution and Analysis
Intro
Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing info and communication services. Significant business sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help has ended up being a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in general and Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change 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 valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis has certain strengths that can be utilized to reduce the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong financial position allows the business to think about numerous development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weak points of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable 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 dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help also, but the development could be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed certain dangers to Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. However, the overall monetary performance of the business could be evaluated by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of clients at a prospective cost.
Along with it, the second graph which reveals the annual growth in the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help total assets, shows that the business is rather efficient in adding worth to its properties through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the circulation of overall revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, 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 shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution 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 utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the existing market scenario.
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 6th in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the declining industry development. Therefore, introduction of digital publishing could prove to be an immediate service with low amount of threat for the company. The company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer demand, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company ought to 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 industry is declining given that 2008, showing a hazard to the company's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
