The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Solution and Analysis
Introduction
The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services including; gathering info, processing details and interaction services. Significant service sections of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Solution has actually become a specialized details service provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions 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 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 Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help has specific strengths that can be used to lower the dangers, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which could increase constraints for the business in implementing its development program. The weak points of The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Analysis as well, however the development might be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain threats to The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total revenues of The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible cost.
Together with it, the 2nd graph which shows the yearly development in the The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help total properties, shows that the company is quite effective in including worth to its properties through its earnings. The development in properties reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the circulation of total profits of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The government policies regarding 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 rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Analysis. However, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning 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 Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents presented in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market segments, with a major concentrate on educational publications. CIP acts as a threat 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 The Story Of K2 And The Brotherhood Of The Rope 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors 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.
Suggestions
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 achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining market growth. Therefore, introduction of digital publishing could show to be an instant solution with low quantity of risk for the business. However, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the consumer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a risk to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
