The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution and Analysis
Introduction
The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing details and communication services. Significant organisation segments of the business include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help has become a specialized info supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help has certain strengths that can be used to lower the hazards, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to think about a number of advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restrictions for the business in executing its development program. The weak points of The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help also, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing 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 reduce its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain risks to The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors 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 using particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The overall monetary efficiency of the company might be evaluated by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help is growing and the business is rather effective in attracting a large number of consumers at a potential price.
Together with it, the second chart which shows the yearly growth in the The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Analysis total possessions, shows that the business is rather efficient in adding value to its assets through its earnings. The growth in properties shows that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis relating to the circulation of overall earnings of the company. Huge part of the incomes of CMP comes from the sales of its released 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 advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on specific sites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Entrepreneurs Dilemma Alibaba Tencent And Amazon As E Commerce Platforms Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant service to avoid the declining market development. For that reason, introduction of digital publishing could show to be an instant solution with low amount of risk for the company. Nevertheless, the business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer demand, the potential markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be managed by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
