The Good Night Motel 2 Case Study Solution and Analysis
Introduction
The Good Night Motel 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Good Night Motel 2 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Good Night Motel 2 Case Study Help has certain strengths that can be made use of to minimize the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Good Night Motel 2 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong financial position allows the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weak points of The Good Night Motel 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting The Good Night Motel 2 Case Study Help also, but the growth could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular risks to The Good Night Motel 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of The Good Night Motel 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total earnings of The Good Night Motel 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in attracting a large number of consumers at a potential cost.
In addition to it, the 2nd graph which shows the annual growth in the The Good Night Motel 2 Case Study Analysis overall assets, shows that the business is quite efficient in adding worth to its possessions through its earnings. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the distribution of overall incomes of the business. Major 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 business might move towards other organisation segments with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the The Good Night Motel 2 Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology together with the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Good Night Motel 2 Case Study Help consists of the issues of environmental communities 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 needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the files presented in the virtual libraries on particular sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Good Night Motel 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Good Night Motel 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and third in various market sections, with a significant focus on academic publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Good Night Motel 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk 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 risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to first gathers the information connected to the consumer need, the prospective markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the business needs to choose one possible segment for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business should go for the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
