Top 20 Exercise Bikes Case Study Solution and Analysis
Introduction
Top 20 Exercise Bikes Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in general and Top 20 Exercise Bikes Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities 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
Top 20 Exercise Bikes Case Study Solution has certain strengths that can be used to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Top 20 Exercise Bikes Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position permits the company to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Top 20 Exercise Bikes Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Top 20 Exercise Bikes Case Study Analysis too, but the growth might be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned specific hazards to Top 20 Exercise Bikes Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Top 20 Exercise Bikes Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall profits of Top 20 Exercise Bikes Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in bring in a big number of customers at a possible cost.
Together with it, the 2nd chart which shows the annual development in the Top 20 Exercise Bikes Case Study Analysis total properties, reveals that the company is rather effective in adding worth to its properties through its incomes. The growth in properties shows that the total worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis regarding the distribution of total profits of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP 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 integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Top 20 Exercise Bikes Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Top 20 Exercise Bikes Case Study Solution consist of the providers of the paper for publishing 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 Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Top 20 Exercise Bikes Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market segments, with a major focus on educational publications. CIP acts as a risk 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 marketplace share of Top 20 Exercise Bikes Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Top 20 Exercise Bikes Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 service segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business need an instant service to prevent the declining market growth. For that reason, introduction of digital publishing might show to be an immediate option with low quantity of threat for the company. However, the company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must first gathers the information connected to the consumer need, the potential markets, the federal government policies and the information connected to the rivals provided in the market. After that, the business ought to choose one possible sector for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business must opt for the preliminary offering. The business ought to go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a danger to the business's long term presence, however the situation can be managed by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
