The Weekend That Changed Wall Street 2 Case Study Solution and Analysis
Introduction
The Weekend That Changed Wall Street 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, The Weekend That Changed Wall Street 2 Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company 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 Weekend That Changed Wall Street 2 Case Study Analysis has particular strengths that can be used to minimize the risks, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Weekend That Changed Wall Street 2 Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong financial position enables the company to think about numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which might increase restrictions for the company in executing its development program. The weaknesses of The Weekend That Changed Wall Street 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting The Weekend That Changed Wall Street 2 Case Study Help as well, however the growth could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually posed particular risks to The Weekend That Changed Wall Street 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of The Weekend That Changed Wall Street 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly overall earnings of The Weekend That Changed Wall Street 2 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in bring in a big number of consumers at a prospective price.
In addition to it, the second graph which shows the yearly growth in the The Weekend That Changed Wall Street 2 Case Study Analysis overall properties, shows that the business is quite efficient in adding worth to its possessions through its incomes. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the distribution of total earnings of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP company are high. The federal government policies concerning 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 costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the The Weekend That Changed Wall Street 2 Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Weekend That Changed Wall Street 2 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Weekend That Changed Wall Street 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Weekend That Changed Wall Street 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant concentrate on educational publications. CIP serves as a danger 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 marketplace share of The Weekend That Changed Wall Street 2 Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as The Weekend That Changed Wall Street 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• 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 focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products 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 suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an instant service to prevent the declining industry development. Introduction of digital publishing could show to be an immediate option with low quantity of threat for the business. However, the company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must first collects the information connected to the customer demand, the possible markets, the government policies and the data associated with the competitors provided in the market. After that, the business ought to decide one prospective segment for its preliminary offering. It must collect research that how it could separate its digital publishing from the existing rivals' items. The steps above the business should go for the preliminary offering. If the initial offering proves a success, the business should opt for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a danger to the company's long term existence, but the circumstance can be managed by considering a development plan in the future. The company might think about 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.
