The American Dream Case Study Solution and Analysis
The American Dream Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing information and communication services. Major company sectors of the business consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. The American Dream Case Study Analysis has actually become a specialized details company and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and The American Dream Case Study Analysis in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
The American Dream Case Study Solution has particular strengths that can be made use of to lower the risks, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The American Dream Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position enables the business to consider several advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of The American Dream Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing market is declining considering that 2008, impacting The American Dream Case Study Help as well, however the growth could be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client 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 funds.
The altering macro patterns in the market and increasing competition in the publishing industry has postured certain threats to The American Dream Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of The American Dream Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the danger of losing the consumer base.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. However, the general financial efficiency of the business might be analyzed by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of The American Dream Case Study Help is growing and the company is rather effective in drawing in a a great deal of clients at a prospective rate.
In addition to it, the second chart which reveals the annual development in the The American Dream Case Study Analysis overall assets, shows that the business is rather efficient in including value to its properties through its incomes. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the circulation of total profits of the company. Major 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 company could move towards other company sectors with a potential growth to accomplish its future development objective.
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting The American Dream Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the The American Dream Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies connected to the import of books impact the total business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out informative products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the The American Dream Case Study Help. However, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting The American Dream Case Study Analysis consists of the issues of environmental communities 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 must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal 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 entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The American Dream Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The American Dream Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an instant service to prevent the decreasing market growth. Introduction of digital publishing might show to be an instant service with low quantity of risk for the business. However, the company could also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company ought to initially gathers the information connected to the customer need, the prospective markets, the federal government policies and the data connected to the rivals provided in the market. After that, the business ought to decide one possible sector for its initial offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business need to go for the initial offering. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term existence, however the circumstance can be controlled by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.