The American Express Card Chinese Version Case Study Solution and Analysis
Introduction
The American Express Card Chinese Version Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing details and communication services. Significant service segments of the company include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. The American Express Card Chinese Version Case Study Solution has ended up being a specialized information provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing market in general and The American Express Card Chinese Version Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement 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 company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The American Express Card Chinese Version Case Study Analysis has particular strengths that can be used to lower the threats, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The American Express Card Chinese Version Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position enables the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase restraints for the business in implementing its advancement program. The weaknesses of The American Express Card Chinese Version Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The American Express Card Chinese Version Case Study Solution as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular threats to The American Express Card Chinese Version Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The American Express Card Chinese Version Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total revenues of The American Express Card Chinese Version Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a large number of clients at a possible price.
In addition to it, the second graph which shows the annual development in the The American Express Card Chinese Version Case Study Solution total assets, shows that the business is rather effective in including value to its possessions through its incomes. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the circulation of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The American Express Card Chinese Version Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding 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 involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence 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. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The American Express Card Chinese Version Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The American Express Card Chinese Version Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 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 duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing market growth. Introduction of digital publishing could show to be an immediate solution with low amount of danger for the business. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must first collects the information associated with the consumer demand, the prospective markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the business ought to decide one possible section for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing competitors' products. After all the actions above the business should opt for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
