Smoothpay Growing A Mobile Payment User Base Case Study Solution and Analysis
Introduction
Smoothpay Growing A Mobile Payment User Base Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing details and communication services. Significant organisation sections of the business consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Smoothpay Growing A Mobile Payment User Base Case Study Solution has ended up being a specialized info supplier and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and Smoothpay Growing A Mobile Payment User Base Case Study Solution in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Smoothpay Growing A Mobile Payment User Base Case Study Analysis has specific strengths that can be utilized to minimize the dangers, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Smoothpay Growing A Mobile Payment User Base Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position allows the business to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restraints for the company in implementing its development program. The weaknesses of Smoothpay Growing A Mobile Payment User Base Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Smoothpay Growing A Mobile Payment User Base Case Study Analysis as well, but the growth might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular hazards to Smoothpay Growing A Mobile Payment User Base Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Smoothpay Growing A Mobile Payment User Base Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the annual total profits of Smoothpay Growing A Mobile Payment User Base Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in bring in a large number of clients at a potential price.
Along with it, the 2nd chart which shows the yearly growth in the Smoothpay Growing A Mobile Payment User Base Case Study Solution overall properties, reveals that the business is rather effective in including worth to its assets through its incomes. The development in properties shows that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis relating to the distribution of overall earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Smoothpay Growing A Mobile Payment User Base Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Smoothpay Growing A Mobile Payment User Base Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Smoothpay Growing A Mobile Payment User Base Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Smoothpay Growing A Mobile Payment User Base Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Smoothpay Growing A Mobile Payment User Base Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant concentrate on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Smoothpay Growing A Mobile Payment User Base Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market development. For that reason, intro of digital publishing might prove to be an instant solution with low quantity of risk for the company. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first collects the data associated with the consumer need, the prospective markets, the government policies and the data related to the competitors presented in the market. After that, the business needs to choose one possible section for its initial offering. It should collect research that how it could separate its digital publishing from the existing rivals' products. The steps above the business need to go for the initial offering. If the preliminary offering shows a success, the business needs to choose the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
