Spotify Face The Music 2 Case Study Solution and Analysis
Intro
Spotify Face The Music 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Spotify Face The Music 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 scenario? Do the long important experience, technical resources and the capabilities of the company 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
Spotify Face The Music 2 Case Study Help has specific strengths that can be utilized to reduce the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Spotify Face The Music 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong monetary position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Spotify Face The Music 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Spotify Face The Music 2 Case Study Help as well, however the growth might be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific risks to Spotify Face The Music 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Spotify Face The Music 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry along with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. The overall monetary efficiency of the business might be evaluated by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Spotify Face The Music 2 Case Study Help is growing and the company is quite efficient in attracting a large number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the yearly development in the Spotify Face The Music 2 Case Study Analysis overall properties, reveals that the business is quite efficient in adding value to its possessions through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the circulation of overall incomes of the company. 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 might move towards other company sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Spotify Face The Music 2 Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the overall service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the Spotify Face The Music 2 Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Spotify Face The Music 2 Case Study Solution includes the issues of environmental communities 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 used while publishing ought to not be damaging for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry 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 given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Spotify Face The Music 2 Case Study Help consist of the providers of the paper for publishing files. 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 Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers 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. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Spotify Face The Music 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining market growth. Introduction of digital publishing could show to be an instant option with low quantity of threat for the company. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first gathers the data related to the consumer need, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a danger to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
