The Re Branding Of Barbie Into The Digital Age Case Study Solution and Analysis
Introduction
The Re Branding Of Barbie Into The Digital Age Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and The Re Branding Of Barbie Into The Digital Age Case Study Solution in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 abilities of the company 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 Re Branding Of Barbie Into The Digital Age Case Study Solution has particular strengths that can be made use of to minimize the risks, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of The Re Branding Of Barbie Into The Digital Age Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the business to consider a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase constraints for the business in implementing its development program. The weak points of The Re Branding Of Barbie Into The Digital Age Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining since 2008, impacting The Re Branding Of Barbie Into The Digital Age Case Study Solution as well, but the development might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has positioned certain dangers to The Re Branding Of Barbie Into The Digital Age Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of The Re Branding Of Barbie Into The Digital Age Case Study Analysis due to the customer shift towards virtual libraries.
• The presence 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 utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be computed. The general financial performance of the business might be examined by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of The Re Branding Of Barbie Into The Digital Age Case Study Analysis is growing and the business is rather effective in attracting a large number of consumers at a possible cost.
In addition to it, the 2nd graph which shows the yearly development in the The Re Branding Of Barbie Into The Digital Age Case Study Analysis total possessions, shows that the company is quite effective in including value to its possessions through its incomes. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the distribution of overall incomes of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Re Branding Of Barbie Into The Digital Age Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Together with it, the financial policies connected to the import of books impact the general company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out informative materials etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the The Re Branding Of Barbie Into The Digital Age Case Study Analysis. Nevertheless, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Re Branding Of Barbie Into The Digital Age Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five 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 attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Re Branding Of Barbie Into The Digital Age Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry 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. Major rivals of The Re Branding Of Barbie Into The Digital Age Case Study Solution consist of;.
• Chemical Industry 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the customer demand, the possible markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a threat 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 development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
