Social Games Case Study Solution and Analysis
Intro
Social Games Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing info and interaction services. Major service segments of the company consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports and so on. Social Games Case Study Solution has actually become a specialized information company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Social Games Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP 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 techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions 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 abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Social Games Case Study Solution has certain strengths that can be used to lower the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Social Games Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position permits the company to consider several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Social Games Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Social Games Case Study Analysis as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific dangers to Social Games Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Social Games Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total incomes of Social Games Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in bring in a big number of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the Social Games Case Study Solution overall properties, reveals that the company is rather effective in adding value to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the circulation of overall earnings of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Social Games Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading useful materials and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Social Games Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Social Games Case Study Solution includes the issues of environmental communities 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 should 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 managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of 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 market. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Social Games Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Social Games Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Social Games Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first gathers the data related to the customer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. After that, the business should choose one potential segment for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the company ought to go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a threat to the business's long term existence, however the situation can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
