The Market Power Of Platform Mediated Networks Case Study Solution and Analysis
Introduction
The Market Power Of Platform Mediated Networks Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing market in basic and The Market Power Of Platform Mediated Networks Case Study Help in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long important experience, technical resources and the abilities of the business could be used 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 Market Power Of Platform Mediated Networks Case Study Help has particular strengths that can be made use of to lower the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Market Power Of Platform Mediated Networks Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position enables the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase constraints for the company in executing its development program. The weaknesses of The Market Power Of Platform Mediated Networks Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting The Market Power Of Platform Mediated Networks Case Study Analysis as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has presented specific dangers to The Market Power Of Platform Mediated Networks Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of The Market Power Of Platform Mediated Networks Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total revenues of The Market Power Of Platform Mediated Networks Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in attracting a large number of clients at a possible price.
In addition to it, the second graph which shows the yearly growth in the The Market Power Of Platform Mediated Networks Case Study Solution overall assets, shows that the business is quite effective in including value to its properties through its incomes. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis concerning the circulation of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the The Market Power Of Platform Mediated Networks Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the general service at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the The Market Power Of Platform Mediated Networks Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Market Power Of Platform Mediated Networks Case Study Solution includes the concerns of ecological 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
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 brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry 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 competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Market Power Of Platform Mediated Networks Case Study Solution include the suppliers of the paper for releasing 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 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 buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Market Power Of Platform Mediated Networks Case Study Help include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the prominent players in the publishing industry with an annual total profits 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 opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible 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 utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining market development. The business might 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 business should first gathers the data associated with the consumer need, the prospective markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company ought to choose one prospective segment for its initial offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business should go for the initial offering. If the initial offering shows a success, the company must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, showing a danger to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
