The Drunkards Walk How Randomness Rules Our Lives Case Study Solution and Analysis
The Drunkards Walk How Randomness Rules Our Lives Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and The Drunkards Walk How Randomness Rules Our Lives Case Study Solution in particular. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Drunkards Walk How Randomness Rules Our Lives Case Study Help has particular strengths that can be made use of to lower the threats, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Drunkards Walk How Randomness Rules Our Lives Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the business to think about numerous advancement chances without any fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its advancement program. The weak points of The Drunkards Walk How Randomness Rules Our Lives Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing market is decreasing since 2008, affecting The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis as well, but the development could be restored by availing particular chances 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 client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has positioned certain threats to The Drunkards Walk How Randomness Rules Our Lives Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of The Drunkards Walk How Randomness Rules Our Lives Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competition increases the risk of losing the customer base.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. Nevertheless, the total financial performance of the company might be examined by using the charts given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis is growing and the company is rather efficient in attracting a a great deal of clients at a possible rate.
In addition to it, the second chart which reveals the annual development in the The Drunkards Walk How Randomness Rules Our Lives Case Study Solution total assets, reveals that the company is rather efficient in including worth to its assets through its profits. The development in possessions shows that the overall value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the distribution of overall incomes of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a possible development to achieve its future advancement goal.
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful products etc. China has the highest population on the planet with a high population growth, revealing the increasing number of customers of the The Drunkards Walk How Randomness Rules Our Lives Case Study Help. Nevertheless, the customer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Ecological forces affecting The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the files provided in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Drunkards Walk How Randomness Rules Our Lives Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it might 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing market development. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the data related to the consumer need, the prospective markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is decreasing since 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.