The Whiz Kids 2 Case Study Solution and Analysis
Intro
The Whiz Kids 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, The Whiz Kids 2 Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Whiz Kids 2 Case Study Analysis has particular strengths that can be made use of to reduce the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Whiz Kids 2 Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position enables the business to think about numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its development program. The weak points of The Whiz Kids 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, 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 needs to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, affecting The Whiz Kids 2 Case Study Help as well, but the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has positioned specific dangers to The Whiz Kids 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of The Whiz Kids 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual total revenues of The Whiz Kids 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a big number of consumers at a potential cost.
Along with it, the second graph which shows the yearly growth in the The Whiz Kids 2 Case Study Help overall assets, reveals that the business is quite effective in adding value to its assets through its revenues. The development in assets shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the circulation of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces affecting The Whiz Kids 2 Case Study Analysis organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Whiz Kids 2 Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies related to the import of books affect the overall company at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Whiz Kids 2 Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Whiz Kids 2 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Whiz Kids 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as The Whiz Kids 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments 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 immediate option to prevent the declining industry growth. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to initially collects the data related to the consumer need, the potential markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a danger to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
