Taking The Plunge New Luxury Ventures 2 Case Study Solution and Analysis
Introduction
Taking The Plunge New Luxury Ventures 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing information and interaction services. Major company segments of the business include; books, regulars, consultancy and distribution. The business has a large item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Taking The Plunge New Luxury Ventures 2 Case Study Analysis has ended up being a specialized info company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Taking The Plunge New Luxury Ventures 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 company could be utilized 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
Taking The Plunge New Luxury Ventures 2 Case Study Help has certain strengths that can be made use of to lower the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Taking The Plunge New Luxury Ventures 2 Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position permits the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Taking The Plunge New Luxury Ventures 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Taking The Plunge New Luxury Ventures 2 Case Study Solution as well, however the growth could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific risks to Taking The Plunge New Luxury Ventures 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Taking The Plunge New Luxury Ventures 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. The overall financial performance of the business could be evaluated by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Taking The Plunge New Luxury Ventures 2 Case Study Help is growing and the business is quite efficient in drawing in a a great deal of customers at a possible cost.
In addition to it, the second chart which reveals the annual growth in the Taking The Plunge New Luxury Ventures 2 Case Study Solution overall assets, reveals that the business is rather effective in including worth to its properties through its profits. The growth in properties reveals that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis regarding the distribution of overall incomes of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Taking The Plunge New Luxury Ventures 2 Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading helpful products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Taking The Plunge New Luxury Ventures 2 Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Taking The Plunge New Luxury Ventures 2 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging 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 Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Taking The Plunge New Luxury Ventures 2 Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Taking The Plunge New Luxury Ventures 2 Case Study Analysis include;.
• Chemical Market 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Taking The Plunge New Luxury Ventures 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 company sections 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 company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. Introduction of digital publishing could show to be an immediate option with low amount of danger for the business. Nevertheless, the company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first gathers the information connected to the consumer need, the possible markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the company ought to choose one possible section for its initial offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the initial offering. The business must go for the other markets if the initial offering proves a success. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
