The Womens Tennis Association Comes To China But Who B Case Study Solution and Analysis
Intro
The Womens Tennis Association Comes To China But Who B Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and The Womens Tennis Association Comes To China But Who B Case Study Help in particular. These aspects consist of;
• Entrance 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 technology.
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 business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Womens Tennis Association Comes To China But Who B Case Study Analysis has certain strengths that can be made use of to reduce the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Womens Tennis Association Comes To China But Who B Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong monetary position enables the business to think about several advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of The Womens Tennis Association Comes To China But Who B Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting The Womens Tennis Association Comes To China But Who B Case Study Solution as well, however the growth could be revived by availing particular chances presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer 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 utilizing its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific hazards to The Womens Tennis Association Comes To China But Who B Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of The Womens Tennis Association Comes To China But Who B Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be calculated. Nevertheless, the total monetary performance of the company might be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of The Womens Tennis Association Comes To China But Who B Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of consumers at a prospective price.
Along with it, the second chart which shows the annual growth in the The Womens Tennis Association Comes To China But Who B Case Study Analysis total possessions, reveals that the business is quite effective in adding value to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis concerning the circulation of total profits of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Womens Tennis Association Comes To China But Who B Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Womens Tennis Association Comes To China But Who B 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 provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry 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. Significant competitors of The Womens Tennis Association Comes To China But Who B Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as The Womens Tennis Association Comes To China But Who B Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 organisation sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the information related to the customer demand, the possible markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the company must decide one prospective segment for its preliminary offering. It should collect research study that how it could separate its digital publishing from the existing rivals' products. After all the actions above the company should go for the preliminary offering. The business needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a hazard to the business's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
