Smartbites C June 2009 Case Study Solution and Analysis
Introduction
Smartbites C June 2009 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Smartbites C June 2009 Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Smartbites C June 2009 Case Study Help has specific strengths that can be utilized to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Smartbites C June 2009 Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position allows the business to consider a number of development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its development program. The weak points of Smartbites C June 2009 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Smartbites C June 2009 Case Study Analysis too, however the development might be revived by availing certain chances presented in the market. The market chances for CMP include;
• The business might also present Digital Publishing by using 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 minimize its dependence over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has postured certain dangers to Smartbites C June 2009 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Smartbites C June 2009 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. Nevertheless, the overall monetary efficiency of the business might be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Smartbites C June 2009 Case Study Solution is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
Together with it, the second graph which shows the annual development in the Smartbites C June 2009 Case Study Analysis total assets, shows that the business is quite effective in including worth to its possessions through its revenues. The development in assets shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the circulation of overall incomes of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces impacting Smartbites C June 2009 Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, 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.
The consumer choices 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 choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Smartbites C June 2009 Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Smartbites C June 2009 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Smartbites C June 2009 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant concentrate on educational 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 could wean the marketplace share of Smartbites C June 2009 Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Smartbites C June 2009 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining market growth. For that reason, intro of digital publishing might show to be an instant option with low amount of threat for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first gathers the data related to the consumer demand, the prospective markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a risk to the company's long term presence, but the situation can be controlled by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
