Top 20 Barbells Case Study Solution and Analysis
Intro
Top 20 Barbells Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing information and interaction services. Major service sections of the company consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major products include books, periodicals, online media, exhibits, research reports and so on. Top 20 Barbells Case Study Analysis has ended up being a specialized info company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and Top 20 Barbells Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 circumstance? Do the long valuable 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
Top 20 Barbells Case Study Solution has certain strengths that can be utilized to reduce the threats, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Top 20 Barbells Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to consider several development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the company in implementing its development program. The weaknesses of Top 20 Barbells Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business 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 particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, impacting Top 20 Barbells Case Study Solution as well, however the growth might be restored by availing particular opportunities presented in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has presented particular hazards to Top 20 Barbells Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Top 20 Barbells Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of Top 20 Barbells Case Study Help throughout the period 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 effective in drawing in a big number of consumers at a prospective price.
In addition to it, the second graph which shows the annual development in the Top 20 Barbells Case Study Help overall possessions, reveals that the business is quite efficient in adding worth to its possessions through its profits. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis regarding the circulation of overall revenues of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the efficiency of the company and the current trends 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 might have a significant effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces impacting Top 20 Barbells Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Top 20 Barbells Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Top 20 Barbells Case Study Analysis. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Top 20 Barbells Case Study Analysis includes the issues of environmental neighborhoods 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 utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing industry 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 Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Top 20 Barbells Case Study Solution consist of the suppliers of the paper for releasing documents. 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 Buyer.
Negotiating 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 market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Top 20 Barbells Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market segments, with a significant focus on instructional publications. CIP functions 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 might wean the market share of Top 20 Barbells Case Study Help quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Top 20 Barbells Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors 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 company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an instant solution to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an instant solution with low quantity of risk for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first collects the data associated with the consumer need, the prospective markets, the federal government policies and the data associated with the competitors presented in the market. After that, the company needs to choose one potential section for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business ought to go for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a hazard to the company's long term presence, but the situation can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
