Think You Have Power Check Your Perceptions Case Study Solution and Analysis
Intro
Think You Have Power Check Your Perceptions Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing market in basic and Think You Have Power Check Your Perceptions Case Study Solution in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Think You Have Power Check Your Perceptions Case Study Analysis has specific strengths that can be utilized to minimize the dangers, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Think You Have Power Check Your Perceptions Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase restraints for the business in implementing its advancement program. The weak points of Think You Have Power Check Your Perceptions Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Think You Have Power Check Your Perceptions Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business might also present 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 minimize its reliance over Chinese markets by using its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has postured specific risks to Think You Have Power Check Your Perceptions Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Think You Have Power Check Your Perceptions Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The general monetary performance of the company might be analyzed by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Think You Have Power Check Your Perceptions Case Study Help is growing and the business is quite efficient in bring in a a great deal of consumers at a potential price.
Along with it, the 2nd graph which reveals the yearly growth in the Think You Have Power Check Your Perceptions Case Study Help overall possessions, shows that the company is rather effective in including value to its properties through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis regarding the circulation of total profits of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces affecting 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 Think You Have Power Check Your Perceptions Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books impact the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Think You Have Power Check Your Perceptions Case Study Analysis consists of the concerns of ecological communities over the usage 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 should not be harmful 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 Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
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. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Think You Have Power Check Your Perceptions Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 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 a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Think You Have Power Check Your Perceptions Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand 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 competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an immediate solution to avoid the declining market growth. Therefore, intro of digital publishing might prove to be an immediate solution with low amount of danger for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data associated with the consumer need, the prospective markets, the government guidelines and the data associated with the competitors presented in the market. After that, the business must choose one possible segment for its preliminary offering. It must gather research that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, showing a risk to the business's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
