Stepsmart Fitness 3 Case Study Solution and Analysis
Introduction
Stepsmart Fitness 3 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in general and Stepsmart Fitness 3 Case Study Solution in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous concerns 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 abilities of the business could be utilized 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
Stepsmart Fitness 3 Case Study Help has certain strengths that can be used to reduce the risks, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Stepsmart Fitness 3 Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong financial position allows the company to think about a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Stepsmart Fitness 3 Case Study Analysis are given 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 growth. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Stepsmart Fitness 3 Case Study Analysis as well, but the growth might be revived by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might 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 changing macro patterns in the market and increasing competitors in the publishing market has postured certain threats to Stepsmart Fitness 3 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Stepsmart Fitness 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals 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 using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be calculated. The general financial efficiency of the business could be analyzed by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Stepsmart Fitness 3 Case Study Help is growing and the company is quite effective in attracting a large number of consumers at a potential price.
In addition to it, the 2nd chart which reveals the yearly development in the Stepsmart Fitness 3 Case Study Solution total possessions, reveals that the business is quite effective in adding value to its assets through its incomes. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis regarding the distribution of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered 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 government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces impacting Stepsmart Fitness 3 Case Study Solution organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices 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.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Stepsmart Fitness 3 Case Study Help includes the issues of environmental 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 should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the appearance 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 prospective development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Stepsmart Fitness 3 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Stepsmart Fitness 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use 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 current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an instant option to avoid the decreasing industry growth. For that reason, intro of digital publishing might prove to be an immediate solution with low amount of threat for the company. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the customer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a risk to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
