The Prediction Lovers Handbook 2 Case Study Solution and Analysis
Introduction
The Prediction Lovers Handbook 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and The Prediction Lovers Handbook 2 Case Study Help in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Prediction Lovers Handbook 2 Case Study Help has particular strengths that can be used to reduce the hazards, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Prediction Lovers Handbook 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase constraints for the business in implementing its development program. The weak points of The Prediction Lovers Handbook 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It needs to propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting The Prediction Lovers Handbook 2 Case Study Analysis also, however the growth might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed specific dangers to The Prediction Lovers Handbook 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Prediction Lovers Handbook 2 Case Study Help 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 gain a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be computed. However, the general monetary performance of the business might be analyzed by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Prediction Lovers Handbook 2 Case Study Help is growing and the company is quite efficient in bring in a a great deal of consumers at a potential price.
Along with it, the second chart which shows the annual development in the The Prediction Lovers Handbook 2 Case Study Help total assets, shows that the company is quite effective in adding worth to its assets through its profits. The growth in assets shows that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the circulation of total revenues of the business. Huge part of the incomes of CMP comes 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 accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the The Prediction Lovers Handbook 2 Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the total company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Prediction Lovers Handbook 2 Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Prediction Lovers Handbook 2 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Prediction Lovers Handbook 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as The Prediction Lovers Handbook 2 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant option to prevent the declining market growth. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first collects the information associated with the customer need, the possible markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the business must choose one potential segment for its preliminary offering. It should gather research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company must go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a danger to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
