The London 2012 Olympic Games Spanish Version Case Study Solution and Analysis
Introduction
The London 2012 Olympic Games Spanish Version Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing details and communication services. Significant service sections of the company include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. The London 2012 Olympic Games Spanish Version Case Study Analysis has become a specialized details supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, The London 2012 Olympic Games Spanish Version Case Study Solution has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 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 London 2012 Olympic Games Spanish Version Case Study Help has specific strengths that can be made use of to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The London 2012 Olympic Games Spanish Version Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of The London 2012 Olympic Games Spanish Version Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, impacting The London 2012 Olympic Games Spanish Version Case Study Help as well, however the development might be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth 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 competitors in the publishing industry has posed certain risks to The London 2012 Olympic Games Spanish Version Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The London 2012 Olympic Games Spanish Version Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual overall earnings of The London 2012 Olympic Games Spanish Version Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather efficient in bring in a large number of consumers at a prospective cost.
Along with it, the 2nd graph which reveals the yearly development in the The London 2012 Olympic Games Spanish Version Case Study Help overall properties, reveals that the company is rather effective in adding value to its properties through its revenues. The growth in assets reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the distribution of overall incomes of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting The London 2012 Olympic Games Spanish Version Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the The London 2012 Olympic Games Spanish Version Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the The London 2012 Olympic Games Spanish Version Case Study Solution. Nevertheless, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The London 2012 Olympic Games Spanish Version Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The London 2012 Olympic Games Spanish Version Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The London 2012 Olympic Games Spanish Version Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a major focus on educational publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The London 2012 Olympic Games Spanish Version Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as The London 2012 Olympic Games Spanish Version Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant option to prevent the declining market development. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to first collects the information related to the customer need, the prospective markets, the government policies and the data connected to the competitors presented in the market. After that, the company needs to decide one prospective sector for its initial offering. It needs to gather research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the company must go for the preliminary offering. If the preliminary offering shows a success, the company should opt 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 declining considering that 2008, revealing a risk to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
