The Robin Hood Foundation Case Study Solution and Analysis
Intro
The Robin Hood Foundation Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, The Robin Hood Foundation Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Robin Hood Foundation Case Study Solution has particular strengths that can be used to minimize the risks, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Robin Hood Foundation Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restraints for the business in implementing its development program. The weaknesses of The Robin Hood Foundation Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting The Robin Hood Foundation Case Study Help also, however the growth might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually positioned certain risks to The Robin Hood Foundation Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of The Robin Hood Foundation 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 rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be determined. Nevertheless, the total monetary efficiency of the company could be examined by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of The Robin Hood Foundation Case Study Solution is growing and the business is rather effective in bring in a large number of clients at a possible cost.
In addition to it, the 2nd graph which shows the annual growth in the The Robin Hood Foundation Case Study Solution overall assets, shows that the company is rather efficient in adding value to its assets through its profits. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the distribution of total profits of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces impacting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful materials etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the The Robin Hood Foundation Case Study Solution. 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 fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation together with the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Robin Hood Foundation Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous 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 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Robin Hood Foundation Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Robin Hood Foundation Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as The Robin Hood Foundation Case Study Help and CIP. It is also one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining industry development. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a risk to the company's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
