The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution and Analysis
Intro
The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and interaction services. Significant service sections of the company include; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Help has actually ended up being a specialized info provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be used 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 Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Analysis has certain strengths that can be made use of to decrease the threats, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong financial position permits the business to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restraints for the business in implementing its development program. The weak points of The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional 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 strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Help as well, however the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence 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 customer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be computed. The overall monetary efficiency of the company might be examined by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution is growing and the business is rather efficient in drawing in a large number of clients at a potential rate.
In addition to it, the 2nd chart which shows the yearly development in the The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution overall properties, reveals that the business is quite efficient in including worth to its possessions through its profits. The growth in possessions shows that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the distribution of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the company and the recent trends 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 significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP 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 combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products etc. China has the highest population on the planet with a high population development, revealing the increasing number of customers of the The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 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 needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive rivalry 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. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence 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. Major competitors of The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in different market sectors, with a major concentrate on instructional publications. CIP acts as a threat for CMP as it could 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 Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as The Online Economy Strategy And Entrepreneurship Course Architecture Note 2 Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant option to avoid the declining market development. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must first collects the information related to the customer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a hazard to the business's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
