The Walt Disney Company The Entertainment King 5 Case Study Solution and Analysis
Introduction
The Walt Disney Company The Entertainment King 5 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing information and interaction services. Major service sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. The Walt Disney Company The Entertainment King 5 Case Study Solution has become a specialized information supplier and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, The Walt Disney Company The Entertainment King 5 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Walt Disney Company The Entertainment King 5 Case Study Help has specific strengths that can be used to reduce the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Walt Disney Company The Entertainment King 5 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restraints for the company in executing its advancement program. The weak points of The Walt Disney Company The Entertainment King 5 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting The Walt Disney Company The Entertainment King 5 Case Study Analysis as well, but the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain risks to The Walt Disney Company The Entertainment King 5 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Walt Disney Company The Entertainment King 5 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total profits of The Walt Disney Company The Entertainment King 5 Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in drawing in a big number of clients at a potential price.
In addition to it, the 2nd chart which shows the yearly growth in the The Walt Disney Company The Entertainment King 5 Case Study Solution overall assets, shows that the company is quite effective in including value to its properties through its earnings. The growth in assets shows that the total value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting The Walt Disney Company The Entertainment King 5 Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Walt Disney Company The Entertainment King 5 Case Study Solution consists of the issues of ecological 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Walt Disney Company The Entertainment King 5 Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Walt Disney Company The Entertainment King 5 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as The Walt Disney Company The Entertainment King 5 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the declining industry growth. Intro of digital publishing could show to be an instant service with low amount of risk for the business. Nevertheless, the company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first collects the information connected to the customer need, the potential markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the business needs to decide one possible sector for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. After all the actions above the business must opt for the initial offering. If the initial offering shows a success, the company ought to opt for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
