Three Jays Corporation 2 Case Study Solution and Analysis
Introduction
Three Jays Corporation 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Three Jays Corporation 2 Case Study Solution in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change 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 important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Three Jays Corporation 2 Case Study Solution has particular strengths that can be made use of to reduce the dangers, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Three Jays Corporation 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the business to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Three Jays Corporation 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Three Jays Corporation 2 Case Study Solution as well, but the growth could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually presented particular dangers to Three Jays Corporation 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Three Jays Corporation 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total revenues of Three Jays Corporation 2 Case Study Analysis 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 attracting a large number of clients at a possible cost.
Together with it, the second chart which reveals the annual growth in the Three Jays Corporation 2 Case Study Analysis total possessions, reveals that the business is quite efficient in including worth to its properties through its profits. The growth in assets shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis relating to the distribution of total profits of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered 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 highly monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful products etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the Three Jays Corporation 2 Case Study Analysis. However, the customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Three Jays Corporation 2 Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging 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 approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Three Jays Corporation 2 Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider 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 needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Three Jays Corporation 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in different market sectors, with a major focus on educational publications. CIP functions 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 marketplace share of Three Jays Corporation 2 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the declining industry growth. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the information related to the consumer need, the possible markets, the government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
