The Fight Against Skyrocketing Textbook Prices B Case Study Solution and Analysis
Intro
The Fight Against Skyrocketing Textbook Prices B Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and The Fight Against Skyrocketing Textbook Prices B Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Fight Against Skyrocketing Textbook Prices B Case Study Help has specific strengths that can be made use of to reduce the threats, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Fight Against Skyrocketing Textbook Prices B Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position permits the business to consider numerous advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of The Fight Against Skyrocketing Textbook Prices B Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting The Fight Against Skyrocketing Textbook Prices B Case Study Solution as well, however the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific threats to The Fight Against Skyrocketing Textbook Prices B Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of The Fight Against Skyrocketing Textbook Prices B Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. However, the general monetary efficiency of the company might be analyzed by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of The Fight Against Skyrocketing Textbook Prices B Case Study Solution is growing and the business is rather efficient in attracting a a great deal of customers at a possible rate.
Along with it, the 2nd graph which reveals the yearly growth in the The Fight Against Skyrocketing Textbook Prices B Case Study Help overall properties, shows that the company is quite efficient in including value to its assets through its profits. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces impacting The Fight Against Skyrocketing Textbook Prices B Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Fight Against Skyrocketing Textbook Prices B Case Study Help includes the concerns of ecological communities over the use 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 should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Fight Against Skyrocketing Textbook Prices B Case Study Solution consist of the suppliers of the paper for publishing documents. 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.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Fight Against Skyrocketing Textbook Prices B Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
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.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining market growth. Therefore, introduction of digital publishing might prove to be an instant solution with low amount of danger for the business. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the data related to the customer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term existence, but the scenario can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
