The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution and Analysis
Introduction
The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing information and interaction services. Major business segments of the business include; books, periodicals, consultancy and distribution. The business has a large product portfolio and its major items consist of books, regulars, online media, exhibitions, research reports and so on. The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Analysis has actually become a specialized info provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution has specific strengths that can be used to reduce the risks, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong monetary position enables the business to think about numerous development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution as well, but the growth could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually postured particular hazards to The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Analysis due to the consumer 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 acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total earnings of The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather efficient in bring in a large number of consumers at a prospective rate.
Along with it, the 2nd chart which reveals the yearly growth in the The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution overall assets, shows that the company is rather efficient in including worth to its possessions through its profits. The growth in possessions reveals that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the circulation of overall revenues of the business. Major 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 could move towards other organisation segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of customers of the The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as The Munich Oktoberfest From Local Tradition To Global Capitalism Case Study Solution and CIP. It is likewise one of the prominent gamers 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 variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry development. Introduction of digital publishing might show to be an immediate service with low quantity of threat for the business. However, the company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the information associated with the customer need, the prospective markets, the federal government policies and the data related to the competitors provided in the market. After that, the business ought to choose one possible segment for its initial offering. It should gather research study that how it might separate its digital publishing from the existing rivals' items. After all the actions above the company should opt for the initial offering. The business should go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
