The Open Mind Letting Go Of Single Answer Certainty Case Study Solution and Analysis
The Open Mind Letting Go Of Single Answer Certainty Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, The Open Mind Letting Go Of Single Answer Certainty Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
The Open Mind Letting Go Of Single Answer Certainty Case Study Solution has certain strengths that can be used to reduce the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Open Mind Letting Go Of Single Answer Certainty Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the business to think about several advancement opportunities without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of The Open Mind Letting Go Of Single Answer Certainty Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
The development of the publishing industry is declining given that 2008, affecting The Open Mind Letting Go Of Single Answer Certainty Case Study Analysis as well, however the development might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain risks to The Open Mind Letting Go Of Single Answer Certainty Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Open Mind Letting Go Of Single Answer Certainty Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall profits of The Open Mind Letting Go Of Single Answer Certainty Case Study Solution during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is rather effective in bring in a large number of consumers at a potential rate.
Together with it, the 2nd chart which shows the annual development in the The Open Mind Letting Go Of Single Answer Certainty Case Study Analysis overall properties, shows that the business is rather efficient in adding value to its possessions through its incomes. The growth in properties reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis regarding 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 displayed in the Case Appendix V. The business might move towards other company segments with a prospective development to achieve its future development goal.
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting The Open Mind Letting Go Of Single Answer Certainty Case Study Help includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Open Mind Letting Go Of Single Answer Certainty Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Open Mind Letting Go Of Single Answer Certainty 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 very same duration, CIP releases similar type of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a major concentrate on instructional publications. CIP serves as a hazard 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 The Open Mind Letting Go Of Single Answer Certainty Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its items in the market.
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 advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to prevent the decreasing market development. Introduction of digital publishing could show to be an immediate solution with low amount of danger for the business. The company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially collects the information related to the customer demand, the prospective markets, the government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to implement its digital publishing program.
The growth of the publishing industry is declining because 2008, revealing a risk to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.