Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution and Analysis
Introduction
Tapping The Innovative Business Potential Of Innovation Contests Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be used 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
Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution has specific strengths that can be used to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tapping The Innovative Business Potential Of Innovation Contests Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position enables the company to consider numerous development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase constraints for the company in implementing its advancement program. The weak points of Tapping The Innovative Business Potential Of Innovation Contests Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Tapping The Innovative Business Potential Of Innovation Contests Case Study Help as well, but the development could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular risks to Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. The overall monetary performance of the business might be examined by utilizing the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution is growing and the company is rather effective in drawing in a a great deal of customers at a possible price.
Together with it, the 2nd graph which shows the annual growth in the Tapping The Innovative Business Potential Of Innovation Contests Case Study Help total assets, reveals that the business is rather efficient in including worth to its properties through its revenues. The development in properties reveals that the total value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall incomes of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Tapping The Innovative Business Potential Of Innovation Contests Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines 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 Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the files presented in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a significant focus on academic publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Tapping The Innovative Business Potential Of Innovation Contests Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players 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 number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
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 company 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 market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the decreasing market development. Therefore, introduction of digital publishing might prove to be an immediate solution with low quantity of danger for the company. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the data related to the consumer demand, the potential markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the company should decide one possible segment for its preliminary offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the company must go for the initial offering. If the preliminary offering shows a success, the company should opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the company's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
