The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution and Analysis
The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution in particular. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help has specific strengths that can be made use of to lower the threats, overcome 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 Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the business to consider a number of development chances with no worry of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in implementing its development program. The weak points of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is declining since 2008, affecting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution too, however the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has postured specific threats to The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual overall earnings of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite efficient in drawing in a large number of customers at a potential rate.
In addition to it, the 2nd chart which reveals the yearly growth in the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help total assets, reveals that the business is rather effective in adding worth to its properties through its revenues. The growth in assets reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis relating to the distribution of overall profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential growth to accomplish its future advancement objective.
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with 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 consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Ecological forces impacting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on specific websites. The changing customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP runs in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining market development. Therefore, introduction of digital publishing might prove to be an immediate service with low amount of threat for the business. The business could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should initially collects the data associated with the consumer demand, the possible markets, the government policies and the data associated with the rivals presented in the market. After that, the company must choose one potential sector for its preliminary offering. It should gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the company ought to opt for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Although, the development of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.