To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution and Analysis
Intro
To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution has certain strengths that can be used to reduce the dangers, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position enables the business to consider several development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, impacting To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace chances 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 might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed certain hazards to To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis due to the customer shift towards virtual libraries.
• The presence 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 using specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall incomes of To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in drawing in a big number of customers at a prospective price.
Along with it, the 2nd chart which reveals the annual development in the To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution total assets, reveals that the business is quite efficient in adding worth to its assets through its revenues. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the circulation of total incomes of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous 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 frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution company 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 general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful products etc. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding 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 ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Solution include 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 provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of To Tweet Or Not To Tweet What Business Can Learn From Social Movements Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments 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 company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant option to avoid the declining industry growth. Therefore, intro of digital publishing could show to be an immediate solution with low amount of risk for the company. However, the business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the customer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, revealing a risk to the business's long term presence, but the scenario 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 advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.
