The Barcelona Mobile World Congress Case Study Solution and Analysis
Introduction
The Barcelona Mobile World Congress Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in general and The Barcelona Mobile World Congress Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous questions 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 business could be used 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 Barcelona Mobile World Congress Case Study Help has certain strengths that can be made use of to reduce the dangers, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Barcelona Mobile World Congress Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its previous 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 threat and supply high worth to its clients.
• Strong monetary position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weaknesses of The Barcelona Mobile World Congress Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting The Barcelona Mobile World Congress Case Study Solution too, however the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular risks to The Barcelona Mobile World Congress Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of The Barcelona Mobile World Congress Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual overall incomes of The Barcelona Mobile World Congress Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite efficient in bring in a large number of consumers at a possible rate.
In addition to it, the second chart which shows the annual growth in the The Barcelona Mobile World Congress Case Study Solution overall assets, reveals that the company is quite efficient in adding value to its possessions through its incomes. The development in properties reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered information might be the analysis regarding the distribution of total profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could 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 Celebration of China. Therefore, it might be said that the overall political forces impacting The Barcelona Mobile World Congress Case Study Solution organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer choices 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 altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Barcelona Mobile World Congress Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents presented in the virtual libraries on specific websites. The changing consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Barcelona Mobile World Congress Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Barcelona Mobile World Congress Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The Barcelona Mobile World Congress Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an instant option to avoid the declining market development. For that reason, intro of digital publishing could prove to be an instant solution with low quantity of danger for the business. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to first collects the data associated with the customer need, the prospective markets, the federal government regulations and the data connected to the competitors provided in the market. After that, the company should decide one potential section for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the company ought to opt for the initial offering. The company ought to go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, however the scenario can be controlled by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
