The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution and Analysis
Introduction
The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big detailed Science and Innovation publishing business through the integration 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 changing macro market trends and forces bring specific obstacles to the publishing market in general and The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help in specific. These elements consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help has certain strengths that can be used to reduce the risks, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to think about several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis also, however the growth could be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular hazards to The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in bring in a big number of clients at a potential rate.
Together with it, the 2nd graph which reveals the yearly development in the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help total properties, reveals that the business is rather effective in including worth to its assets through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the circulation of total earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful materials etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of consumers of the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis. However, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Help includes the concerns 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 ought to not be hazardous 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 Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry 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, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in different market sections, 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 focused on digital publishing and could wean the market share of The Online Economy Strategy And Entrepreneurship Course Architecture Note Case Study Analysis quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth 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 need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry development. Intro of digital publishing could prove to be an immediate solution with low amount of danger for the business. The company could 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 must initially collects the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the business's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
