Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution and Analysis
Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing information and interaction services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution has become a specialized information company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing 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 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 made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help has particular strengths that can be used to decrease the dangers, get rid of the weakness and avail the chances. 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 industry i.e. 60 years permits the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong financial position enables the company to think about a number of advancement opportunities with no worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which could increase restraints for the company in executing its development program. The weaknesses of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing industry is declining given that 2008, affecting Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented particular hazards to Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the hazard of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the yearly overall earnings of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of clients at a prospective price.
Together with it, the 2nd chart which shows the annual development in the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help overall possessions, reveals that the business is rather efficient in adding value to its possessions through its revenues. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the distribution of total profits 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 might move towards other service sectors with a potential growth to achieve its future advancement objective.
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided 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.
Economic forces affecting the publishing sector in general and the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the general service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces impacting Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard 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. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Slice Of The Pie Ruby Collins And Tenants In Common Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Slice Of The Pie Ruby Collins And Tenants In Common Case Study Solution 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 duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks third and second in different market sections, with a major concentrate on instructional publications. CIP functions as a danger 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 Slice Of The Pie Ruby Collins And Tenants In Common Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival 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 terms of company scale. It is also one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company require an instant service to avoid the declining market development. The business might likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the customer need, the possible markets, the government regulations and the information related to the competitors presented in the market. After that, the business must decide one potential section for its preliminary offering. It must gather research study that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the company must go for the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.
The development of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.