The Cheezburger Network 2 Case Study Solution and Analysis
Introduction
The Cheezburger Network 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and The Cheezburger Network 2 Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Cheezburger Network 2 Case Study Help has specific strengths that can be utilized to lower the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Cheezburger Network 2 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position allows the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its advancement program. The weak points of The Cheezburger Network 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting The Cheezburger Network 2 Case Study Solution also, but the development could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually postured certain risks to The Cheezburger Network 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Cheezburger Network 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of The Cheezburger Network 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a big number of consumers at a prospective rate.
Together with it, the 2nd graph which shows the yearly growth in the The Cheezburger Network 2 Case Study Help overall possessions, reveals that the company is rather effective in including worth to its properties through its earnings. The development in possessions shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the circulation of total profits 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 sections with a possible growth to attain 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 trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting The Cheezburger Network 2 Case Study Solution company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The Cheezburger Network 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the total organisation at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Cheezburger Network 2 Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Cheezburger Network 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 files at competitive prices.
Rivals Analysis.
CMP operates in a highly 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. Significant competitors of The Cheezburger Network 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as The Cheezburger Network 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
