The Messy Business Of Reinventing Of Happiness 2 Case Study Solution and Analysis
Introduction
The Messy Business Of Reinventing Of Happiness 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Messy Business Of Reinventing Of Happiness 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Messy Business Of Reinventing Of Happiness 2 Case Study Solution has specific strengths that can be made use of to reduce the threats, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Messy Business Of Reinventing Of Happiness 2 Case Study Help in the publishing industry i.e. 60 years allows the company to offer 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.
• Vast product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position enables the company to think about a number of development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of The Messy Business Of Reinventing Of Happiness 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable 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 attain long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting The Messy Business Of Reinventing Of Happiness 2 Case Study Analysis as well, however the development might be restored by availing specific chances presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has presented particular threats to The Messy Business Of Reinventing Of Happiness 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Messy Business Of Reinventing Of Happiness 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly total earnings of The Messy Business Of Reinventing Of Happiness 2 Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a potential price.
In addition to it, the 2nd graph which shows the annual development in the The Messy Business Of Reinventing Of Happiness 2 Case Study Help total possessions, shows that the business is quite efficient in adding value to its possessions through its incomes. The development in assets reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis concerning the distribution of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind 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 Party of China. For that reason, it might be said that the total political forces affecting The Messy Business Of Reinventing Of Happiness 2 Case Study Analysis business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the The Messy Business Of Reinventing Of Happiness 2 Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting The Messy Business Of Reinventing Of Happiness 2 Case Study Solution includes the issues of ecological communities over the use 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market 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 big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Messy Business Of Reinventing Of Happiness 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Messy Business Of Reinventing Of Happiness 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. For that reason, introduction of digital publishing could prove to be an instant solution with low quantity of risk for the company. Nevertheless, the business might also think about 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 related to the customer need, the prospective markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the company must choose one possible section for its preliminary offering. It must gather research that how it could separate its digital publishing from the existing rivals' items. The steps above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the business ought to choose the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a risk to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
