Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution and Analysis
Introduction
Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and interaction services. Significant company segments of the company include; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its major products include books, regulars, online media, exhibits, research reports etc. Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution has become a specialized information service provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous questions 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 abilities 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
Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Help has particular strengths that can be made use of to decrease the risks, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position allows the company to consider numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restrictions for the business in implementing its development program. The weak points of Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining since 2008, impacting Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis as well, but the development might be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing 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 reduce its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually presented specific hazards to Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. The overall financial efficiency of the company could be analyzed by using the graphs given in the case Appendices. It could be examined 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 items of Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis is growing and the business is quite efficient in drawing in a a great deal of clients at a potential rate.
In addition to it, the 2nd graph which shows the annual growth in the Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution total assets, reveals that the company is quite efficient in adding value to its properties through its earnings. The development in assets shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the distribution of total incomes 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 company could move towards other business segments with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the overall political forces affecting Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Help organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out helpful materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Help. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology along with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on specific sites. The altering consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Tokyo Disneyland 3 New Pricing Policy Needed For Sluggish Demand 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the popular players in the publishing market with an annual overall earnings 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.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company require an instant solution to prevent the declining industry development. Introduction of digital publishing could show to be an immediate service with low amount of risk for the company. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first collects the information related to the consumer need, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, but the situation can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
