The Alibaba Group And Online To Offline O2o Sales Case Study Solution and Analysis
Intro
The Alibaba Group And Online To Offline O2o Sales Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and The Alibaba Group And Online To Offline O2o Sales Case Study Help in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 capabilities of the company 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
The Alibaba Group And Online To Offline O2o Sales Case Study Help has specific strengths that can be utilized to lower the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Alibaba Group And Online To Offline O2o Sales Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong financial position allows the business to think about a number of development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restraints for the company in executing its development program. The weak points of The Alibaba Group And Online To Offline O2o Sales Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining because 2008, impacting The Alibaba Group And Online To Offline O2o Sales Case Study Solution as well, however the growth might be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed specific dangers to The Alibaba Group And Online To Offline O2o Sales Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of The Alibaba Group And Online To Offline O2o Sales Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual overall incomes of The Alibaba Group And Online To Offline O2o Sales Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in bring in a big number of clients at a potential cost.
Together with it, the 2nd chart which shows the annual development in the The Alibaba Group And Online To Offline O2o Sales Case Study Help total properties, shows that the company is rather efficient in adding value to its possessions through its profits. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis regarding the distribution of overall profits of the business. Huge 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 could move towards other company segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the The Alibaba Group And Online To Offline O2o Sales Case Study Solution in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the greatest population in the world with a high population development, showing the increasing number of consumers of the The Alibaba Group And Online To Offline O2o Sales Case Study Analysis. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Alibaba Group And Online To Offline O2o Sales Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires 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 people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Alibaba Group And Online To Offline O2o Sales Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Alibaba Group And Online To Offline O2o Sales Case Study Help include;.
• 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• 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: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors 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 company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the declining market growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the company. Nevertheless, the company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data connected to the customer demand, the possible markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business ought to choose one possible sector for its initial offering. It needs to gather research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the initial offering. If the initial offering proves a success, the business needs to opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
