So You Want To Be A Business Professor Case Study Solution and Analysis
Intro
So You Want To Be A Business Professor Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and interaction services. Major organisation sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. So You Want To Be A Business Professor Case Study Help has ended up being a specialized information service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and So You Want To Be A Business Professor Case Study Solution in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
So You Want To Be A Business Professor Case Study Help has particular strengths that can be used to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of So You Want To Be A Business Professor Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the company to think about numerous development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of So You Want To Be A Business Professor Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting So You Want To Be A Business Professor Case Study Help as well, however the growth could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has postured specific threats to So You Want To Be A Business Professor Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of So You Want To Be A Business Professor Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The total financial efficiency of the business could be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of So You Want To Be A Business Professor Case Study Analysis is growing and the business is rather efficient in attracting a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the yearly development in the So You Want To Be A Business Professor Case Study Solution total assets, reveals that the business is quite efficient in adding value to its properties through its incomes. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the distribution of overall profits of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given 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, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting So You Want To Be A Business Professor Case Study Solution company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting So You Want To Be A Business Professor Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the So You Want To Be A Business Professor Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of So You Want To Be A Business Professor Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as So You Want To Be A Business Professor Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective 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 using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the decreasing market development. The business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially gathers the data associated with the consumer demand, the prospective markets, the government policies and the information related to the competitors provided in the market. After that, the business needs to choose one prospective section for its preliminary offering. It must collect research that how it could separate its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, showing a threat to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
