Smoothpay Management Team Case Study Solution and Analysis
Introduction
Smoothpay Management Team Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Smoothpay Management Team Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of 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 business could be utilized 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 Management Team Case Study Solution has particular strengths that can be used to minimize the threats, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Smoothpay Management Team 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 abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the company to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Smoothpay Management Team Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company 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 should propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting Smoothpay Management Team Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain hazards to Smoothpay Management Team Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Smoothpay Management Team Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly total revenues of Smoothpay Management Team Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in bring in a big number of clients at a possible price.
Together with it, the second chart which shows the yearly growth in the Smoothpay Management Team Case Study Solution total possessions, shows that the company is rather effective in adding value to its possessions through its incomes. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information might 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 published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Smoothpay Management Team Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Smoothpay Management Team Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall company at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Smoothpay Management Team Case Study Help. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Smoothpay Management Team Case Study Analysis includes the concerns of environmental neighborhoods over the usage 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal 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 might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Smoothpay Management Team Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Smoothpay Management Team Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a major concentrate on educational publications. CIP acts as a hazard 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 market share of Smoothpay Management Team Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business 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 together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an instant solution to avoid the declining market development. Intro of digital publishing could show to be an immediate solution with low amount of threat for the company. Nevertheless, the company could likewise 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 collects the information related to the customer need, the prospective markets, the federal government regulations and the information 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 way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, but the scenario can be controlled by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
