The Long Tail Strategy Of It Outsourcing Case Study Solution and Analysis
Introduction
The Long Tail Strategy Of It Outsourcing Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing info and communication services. Significant company sections of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. The Long Tail Strategy Of It Outsourcing Case Study Help has become a specialized information service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and The Long Tail Strategy Of It Outsourcing Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing 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 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 abilities of the company could be utilized 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 Long Tail Strategy Of It Outsourcing Case Study Help has certain strengths that can be utilized to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Long Tail Strategy Of It Outsourcing Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong financial position enables the business to consider several advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weak points of The Long Tail Strategy Of It Outsourcing Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting The Long Tail Strategy Of It Outsourcing Case Study Solution also, but the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain threats to The Long Tail Strategy Of It Outsourcing Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of The Long Tail Strategy Of It Outsourcing Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry along with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be determined. The total financial efficiency of the business could be analyzed by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of The Long Tail Strategy Of It Outsourcing Case Study Help is growing and the business is quite effective in drawing in a large number of clients at a prospective rate.
Together with it, the 2nd chart which shows the annual development in the The Long Tail Strategy Of It Outsourcing Case Study Solution total properties, reveals that the company is rather effective in including value to its properties through its profits. The growth in assets reveals that the overall value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis concerning the circulation of overall incomes of the company. Huge part of the profits of CMP originates 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 growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting The Long Tail Strategy Of It Outsourcing Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Long Tail Strategy Of It Outsourcing Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Long Tail Strategy Of It Outsourcing Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence 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, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Long Tail Strategy Of It Outsourcing Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Long Tail Strategy Of It Outsourcing Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Long Tail Strategy Of It Outsourcing Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to first collects the data related to the customer demand, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term existence, however the scenario can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
