Smoothpay Growing A Mobile Payment User Base Case Study Solution and Analysis
Smoothpay Growing A Mobile Payment User Base Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Smoothpay Growing A Mobile Payment User Base Case Study Analysis in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Smoothpay Growing A Mobile Payment User Base Case Study Analysis has certain strengths that can be used to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Smoothpay Growing A Mobile Payment User Base Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to think about numerous development chances without any worry of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Smoothpay Growing A Mobile Payment User Base Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
The growth of the publishing market is decreasing since 2008, affecting Smoothpay Growing A Mobile Payment User Base Case Study Analysis as well, however the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific dangers to Smoothpay Growing A Mobile Payment User Base Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Smoothpay Growing A Mobile Payment User Base Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the customer base.
The business has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Smoothpay Growing A Mobile Payment User Base Case Study Analysis is growing and the company is rather effective in drawing in a a great deal of customers at a prospective cost.
Together with it, the 2nd graph which reveals the annual growth in the Smoothpay Growing A Mobile Payment User Base Case Study Analysis total possessions, reveals that the business is rather efficient in adding worth to its properties through its revenues. The growth in assets shows that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the distribution of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a potential development to attain its future development objective.
PESTEL analysis could be carried out 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 company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Smoothpay Growing A Mobile Payment User Base Case Study Help includes the concerns of ecological neighborhoods 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 must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Smoothpay Growing A Mobile Payment User Base Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Smoothpay Growing A Mobile Payment User Base Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in different market segments, with a major concentrate on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Smoothpay Growing A Mobile Payment User Base Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Smoothpay Growing A Mobile Payment User Base Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. The company might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the consumer demand, the potential markets, the government policies and the information associated with the competitors provided in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It should collect research study that how it might differentiate its digital publishing from the existing competitors' items. The steps above the company should go for the preliminary offering. If the preliminary offering proves a success, the company must opt for the other markets. In this method the business would be able to execute its digital publishing program.
The development of the publishing market is decreasing since 2008, revealing a threat to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.