The Apple Iphone 2 Case Study Solution and Analysis
Introduction
The Apple Iphone 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and The Apple Iphone 2 Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions 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 development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Apple Iphone 2 Case Study Analysis has certain strengths that can be used to lower the hazards, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Apple Iphone 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its development program. The weak points of The Apple Iphone 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, affecting The Apple Iphone 2 Case Study Analysis as well, however the growth could be revived by availing particular chances provided in the market. The market chances for CMP include;
• The company might also introduce 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 expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured particular dangers to The Apple Iphone 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of The Apple Iphone 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be calculated. The total monetary performance of the company could be evaluated by using the graphs given in the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Apple Iphone 2 Case Study Solution is growing and the company is rather efficient in drawing in a large number of customers at a potential cost.
In addition to it, the 2nd chart which shows the yearly development in the The Apple Iphone 2 Case Study Help overall possessions, reveals that the company is rather efficient in including value to its possessions through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the circulation of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the company and the recent 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 the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting The Apple Iphone 2 Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Apple Iphone 2 Case Study Solution consist of the providers of the paper for publishing documents. 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.
Haggling 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 purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number 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 Apple Iphone 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a significant concentrate on academic publications. CIP acts as a hazard 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 marketplace share of The Apple Iphone 2 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 terms of company scale. It is also among the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors 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.
Recommendations
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 accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate service with low quantity of risk for the company. However, the business might 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 company must first collects the information related to the customer need, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a threat to the business's long term presence, but the circumstance can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
