The Fight Against Skyrocketing Textbook Prices A Case Study Solution and Analysis
Introduction
The Fight Against Skyrocketing Textbook Prices A Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Fight Against Skyrocketing Textbook Prices A Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Fight Against Skyrocketing Textbook Prices A Case Study Analysis has particular strengths that can be utilized 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 Fight Against Skyrocketing Textbook Prices A Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its development program. The weak points of The Fight Against Skyrocketing Textbook Prices A Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting The Fight Against Skyrocketing Textbook Prices A Case Study Solution too, but the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has postured particular hazards to The Fight Against Skyrocketing Textbook Prices A Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of The Fight Against Skyrocketing Textbook Prices A Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. The general financial performance of the company could be analyzed by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Fight Against Skyrocketing Textbook Prices A Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a possible price.
In addition to it, the 2nd chart which shows the yearly development in the The Fight Against Skyrocketing Textbook Prices A Case Study Help total properties, reveals that the company is quite effective in adding value to its assets through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis relating to the circulation of overall earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting The Fight Against Skyrocketing Textbook Prices A Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Fight Against Skyrocketing Textbook Prices A Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition 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 likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Fight Against Skyrocketing Textbook Prices A Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Fight Against Skyrocketing Textbook Prices A Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and 3rd in various market segments, with a significant focus on academic publications. CIP serves 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 might wean the market share of The Fight Against Skyrocketing Textbook Prices A Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Fight Against Skyrocketing Textbook Prices A Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
Suggestions
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 achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. For that reason, introduction of digital publishing could show to be an instant option with low amount of threat for the company. Nevertheless, the business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data related to the customer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. After that, the business should choose one possible section for its preliminary offering. It needs to collect research that how it might separate its digital publishing from the existing competitors' items. The actions above the company must go for the preliminary offering. If the initial offering proves a success, the business must opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a hazard to the business's long term existence, but the situation can be controlled by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
