The Robin Hood Foundation 2 Case Study Solution and Analysis
Introduction
The Robin Hood Foundation 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, The Robin Hood Foundation 2 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 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 Robin Hood Foundation 2 Case Study Solution has certain strengths that can be used to decrease the dangers, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Robin Hood Foundation 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position allows the company to consider a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase constraints for the company in executing its advancement program. The weak points of The Robin Hood Foundation 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting The Robin Hood Foundation 2 Case Study Solution as well, but the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to The Robin Hood Foundation 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Robin Hood Foundation 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business could be examined by utilizing the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of The Robin Hood Foundation 2 Case Study Help is growing and the business is rather effective in drawing in a large number of consumers at a prospective rate.
Along with it, the 2nd chart which shows the yearly growth in the The Robin Hood Foundation 2 Case Study Help overall properties, reveals that the company is rather effective in adding worth to its possessions through its profits. The development in possessions reveals that the total value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis regarding the distribution of total revenues of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Robin Hood Foundation 2 Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on specific sites. The altering consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition 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 competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Robin Hood Foundation 2 Case Study Analysis consist of the providers of the paper for publishing 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.
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 files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Robin Hood Foundation 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks second and third in different market segments, with a significant concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Robin Hood Foundation 2 Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as The Robin Hood Foundation 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing industry growth. The business might 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 needs to first gathers the information associated with the customer demand, the potential markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the company should choose one prospective segment for its preliminary offering. It ought to collect research study that how it could separate its digital publishing from the existing competitors' products. The steps above the business must go for the initial offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a risk to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
