Social Media Big Skinny 2 Case Study Solution and Analysis
Intro
Social Media Big Skinny 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing info and interaction services. Significant company sections of the company consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Social Media Big Skinny 2 Case Study Solution has become a specialized info service provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Social Media Big Skinny 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Social Media Big Skinny 2 Case Study Help has specific strengths that can be utilized to reduce the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Social Media Big Skinny 2 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 prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position allows the business to consider several advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which might increase restraints for the company in executing its advancement program. The weak points of Social Media Big Skinny 2 Case Study Solution are offered 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 highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Social Media Big Skinny 2 Case Study Analysis as well, however the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured particular hazards to Social Media Big Skinny 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Social Media Big Skinny 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be computed. However, the total monetary efficiency of the business might be analyzed by using the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Social Media Big Skinny 2 Case Study Solution is growing and the business is rather efficient in bring in a large number of consumers at a possible price.
Together with it, the second graph which reveals the annual development in the Social Media Big Skinny 2 Case Study Help total properties, shows that the business is rather efficient in including value to its properties through its revenues. The growth in properties shows that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis concerning the circulation of overall incomes of the business. Major part of the revenues 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 sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of customers of the Social Media Big Skinny 2 Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Social Media Big Skinny 2 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Social Media Big Skinny 2 Case Study Help include the providers of the paper for publishing 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 Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Social Media Big Skinny 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Social Media Big Skinny 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an immediate service to prevent the decreasing industry development. Intro of digital publishing might show to be an instant service with low amount of danger for the business. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information connected to the customer need, the prospective markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the company should choose one prospective section for its initial offering. It must collect research that how it could separate its digital publishing from the existing competitors' items. After all the actions above the business should choose the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a risk to the company's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
