Sophia Tannis Life Choices A Case Study Solution and Analysis
Introduction
Sophia Tannis Life Choices A Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Sophia Tannis Life Choices A Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 capabilities of the company 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
Sophia Tannis Life Choices A Case Study Help has specific strengths that can be used to minimize the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sophia Tannis Life Choices A Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong financial position permits the business to think about several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Sophia Tannis Life Choices A Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Sophia Tannis Life Choices A Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has postured certain risks to Sophia Tannis Life Choices A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Sophia Tannis Life Choices A Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be determined. The total monetary performance of the business might be examined by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Sophia Tannis Life Choices A Case Study Help is growing and the business is quite efficient in attracting a a great deal of consumers at a possible cost.
In addition to it, the second chart which shows the annual development in the Sophia Tannis Life Choices A Case Study Help total properties, reveals that the business is quite effective in including worth to its possessions through its earnings. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the circulation of total earnings 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 could move towards other business sectors with a possible growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces affecting the performance of the company and the recent 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 could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing variety of customers of the Sophia Tannis Life Choices A Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Sophia Tannis Life Choices A Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning 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 gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Sophia Tannis Life Choices A Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Sophia Tannis Life Choices A Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Sophia Tannis Life Choices A Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate 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.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing market growth. Introduction of digital publishing might show to be an instant option with low amount of threat for the business. However, the company could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer demand, the possible markets, the government guidelines and the information associated with the rivals presented in the market. After that, the business must decide one potential sector for its initial offering. It must collect research study that how it could separate its digital publishing from the existing rivals' items. The actions above the business must go for the preliminary offering. The company must go for the other markets if the preliminary offering proves 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 considering that 2008, showing a threat to the company's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
