The Age Of The Consumer Innovator 2 Case Study Solution and Analysis
Intro
The Age Of The Consumer Innovator 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing information and interaction services. Significant company segments of the company include; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. The Age Of The Consumer Innovator 2 Case Study Analysis has actually ended up being a specialized info supplier and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and The Age Of The Consumer Innovator 2 Case Study Solution in particular. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
The Age Of The Consumer Innovator 2 Case Study Analysis has specific strengths that can be made use of to reduce the threats, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Age Of The Consumer Innovator 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong financial position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restrictions for the business in executing its development program. The weak points of The Age Of The Consumer Innovator 2 Case Study Solution are offered 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 highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting The Age Of The Consumer Innovator 2 Case Study Help too, but the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also present 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 reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain hazards to The Age Of The Consumer Innovator 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Age Of The Consumer Innovator 2 Case Study Analysis due to the customer shift towards digital 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 competitors can gain a strong customer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly total earnings of The Age Of The Consumer Innovator 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in attracting a large number of clients at a potential cost.
Together with it, the second chart which reveals the annual growth in the The Age Of The Consumer Innovator 2 Case Study Help overall assets, reveals that the business is quite effective in adding value to its possessions through its earnings. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the distribution of total revenues of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative materials etc. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the The Age Of The Consumer Innovator 2 Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Age Of The Consumer Innovator 2 Case Study Help consists of the issues of ecological neighborhoods 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on certain sites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Age Of The Consumer Innovator 2 Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry 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. Major rivals of The Age Of The Consumer Innovator 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in various market sectors, with a significant focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Age Of The Consumer Innovator 2 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Age Of The Consumer Innovator 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining market development. Intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data associated with the customer demand, the potential markets, the government policies and the data associated with the rivals provided in the market. After that, the business must decide one potential sector for its preliminary offering. It must collect research study that how it might separate its digital publishing from the existing rivals' items. The steps above the company should go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a danger to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
