The Business Case For Happiness Case Study Solution and Analysis
The Business Case For Happiness Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing details and interaction services. Significant service sectors of the business consist of; books, regulars, consultancy and circulation. The business has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports etc. The Business Case For Happiness Case Study Analysis has become a specialized info service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and The Business Case For Happiness Case Study Help in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
The Business Case For Happiness Case Study Analysis has certain strengths that can be used to decrease the dangers, conquer the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Business Case For Happiness Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position enables the business to think about several advancement chances with no worry of raising fund externally.
Along with the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of The Business Case For Happiness Case Study Solution are offered 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 highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing market is decreasing since 2008, affecting The Business Case For Happiness Case Study Solution too, however the development could be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned certain threats to The Business Case For Happiness Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Business Case For Happiness Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger 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, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
The company has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be computed. The general monetary efficiency of the company could be analyzed by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of The Business Case For Happiness Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of consumers at a prospective rate.
In addition to it, the second graph which reveals the annual development in the The Business Case For Happiness Case Study Analysis total possessions, shows that the business is rather efficient in including value to its assets through its profits. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis concerning the distribution of total revenues of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a possible development to attain its future advancement goal.
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting The Business Case For Happiness Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Business Case For Happiness Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market 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 files at competitive rates.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Business Case For Happiness Case Study Analysis consist of;.
• Chemical Industry 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 might wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as The Business Case For Happiness Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. For that reason, intro of digital publishing could prove to be an immediate option with low quantity of danger for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first gathers the information connected to the consumer need, the possible markets, the federal government regulations and the information connected to the rivals presented in the market. After that, the business should choose one prospective sector for its preliminary offering. It needs to gather research study that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the company need to go for the initial offering. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
The growth of the publishing market is declining because 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.