The Drunkards Walk How Randomness Rules Our Lives Case Study Solution and Analysis
Introduction
The Drunkards Walk How Randomness Rules Our Lives Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Drunkards Walk How Randomness Rules Our Lives Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis has certain strengths that can be used to lower the hazards, conquer the weak point and obtain the chances. Strengths of CMP are given 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 allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of The Drunkards Walk How Randomness Rules Our Lives Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis as well, but the growth might be revived by availing particular chances presented in the market. The marketplace opportunities 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 a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured particular dangers to The Drunkards Walk How Randomness Rules Our Lives Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The Drunkards Walk How Randomness Rules Our Lives Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. The total financial efficiency of the company might be analyzed by using the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of The Drunkards Walk How Randomness Rules Our Lives Case Study Solution is growing and the business is quite effective in attracting a large number of customers at a possible price.
In addition to it, the second graph which shows the annual growth in the The Drunkards Walk How Randomness Rules Our Lives Case Study Help total assets, reveals that the business is quite efficient in adding worth to its assets through its incomes. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the circulation of total earnings of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it could be said that the general political forces impacting The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Drunkards Walk How Randomness Rules Our Lives Case Study Help 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, 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).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a significant concentrate on instructional publications. CIP serves 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 The Drunkards Walk How Randomness Rules Our Lives Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as The Drunkards Walk How Randomness Rules Our Lives Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an instant option to avoid the declining market growth. For that reason, introduction of digital publishing could prove to be an instant option with low quantity of threat for the business. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the data related to the customer demand, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. After that, the business must decide one potential segment for its initial offering. It must gather research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the company must choose the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, however the situation can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
