Stitch It Group Inc 2 Case Study Solution and Analysis
Intro
Stitch It Group Inc 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing details and interaction services. Significant company sectors of the company include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports and so on. Stitch It Group Inc 2 Case Study Help has ended up being a specialized details provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Stitch It Group Inc 2 Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stitch It Group Inc 2 Case Study Analysis has certain strengths that can be made use of to minimize the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Stitch It Group Inc 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the business to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restrictions for the business in executing its advancement program. The weak points of Stitch It Group Inc 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting Stitch It Group Inc 2 Case Study Help also, however the development might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Stitch It Group Inc 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Stitch It Group Inc 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the overall monetary efficiency of the business might be evaluated by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Stitch It Group Inc 2 Case Study Analysis is growing and the business is rather effective in drawing in a large number of consumers at a prospective price.
Together with it, the second graph which reveals the yearly development in the Stitch It Group Inc 2 Case Study Help total assets, shows that the company is quite effective in adding worth to its assets through its revenues. The development in assets shows that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of overall profits 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 company sections with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the company and the recent trends 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 considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Stitch It Group Inc 2 Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the economic policies related to the import of books impact the general business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out helpful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Stitch It Group Inc 2 Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Stitch It Group Inc 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the files provided in the digital libraries on certain websites. The altering customer choices towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Stitch It Group Inc 2 Case Study Help include the suppliers 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Stitch It Group Inc 2 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 could 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Stitch It Group Inc 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition 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 business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company require an instant option to avoid the declining industry growth. Intro of digital publishing could prove to be an instant solution with low amount of threat for the company. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must first collects the data associated with the consumer demand, the potential markets, the federal government regulations and the data related to the competitors presented in the market. After that, the company should choose one potential segment for its preliminary offering. It must gather research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business need to choose the preliminary offering. If the preliminary offering proves a success, the business should choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
