The Art Of Looking Case Study Solution and Analysis
Introduction
The Art Of Looking Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and interaction services. Significant service segments of the company consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major products include books, periodicals, online media, exhibitions, research reports etc. The Art Of Looking Case Study Solution has actually become a specialized info provider and a large comprehensive Science and Innovation publishing business through the integration 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 house, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and The Art Of Looking Case Study Help in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Art Of Looking Case Study Solution has particular strengths that can be utilized to lower the hazards, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Art Of Looking Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position permits the business to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of The Art Of Looking Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company 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 needs to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting The Art Of Looking Case Study Solution as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific dangers to The Art Of Looking Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of The Art Of Looking Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall profits of The Art Of Looking Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in bring in a big number of clients at a potential rate.
Along with it, the second graph which shows the yearly development in the The Art Of Looking Case Study Help overall possessions, shows that the company is rather efficient in adding value to its assets through its revenues. The growth in possessions shows that the total worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the distribution of total revenues of the company. Huge part of the earnings 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 service segments with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be said that the overall political forces impacting The Art Of Looking Case Study Solution service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings 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 growth, the consumer's preferences towards reading informative products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the The Art Of Looking Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting The Art Of Looking Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Art Of Looking Case Study Analysis include the providers of the paper for releasing files. 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 Purchaser.
Bargaining 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 market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Art Of Looking Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as The Art Of Looking Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk 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 sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining market development. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the data related to the customer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a danger to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
