Tour Planning At Cirque Du Soleil 2 Case Study Solution and Analysis
Intro
Tour Planning At Cirque Du Soleil 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering details, processing information and interaction services. Significant business sections of the company include; books, regulars, consultancy and circulation. The business has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Tour Planning At Cirque Du Soleil 2 Case Study Analysis has become a specialized information company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Tour Planning At Cirque Du Soleil 2 Case Study Solution in particular. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns 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 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
Tour Planning At Cirque Du Soleil 2 Case Study Analysis has specific strengths that can be utilized to reduce the hazards, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Tour Planning At Cirque Du Soleil 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Tour Planning At Cirque Du Soleil 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Tour Planning At Cirque Du Soleil 2 Case Study Help too, however the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition 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 using its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has posed certain risks to Tour Planning At Cirque Du Soleil 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Tour Planning At Cirque Du Soleil 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall incomes of Tour Planning At Cirque Du Soleil 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in bring in a large number of clients at a potential rate.
In addition to it, the 2nd chart which reveals the yearly development in the Tour Planning At Cirque Du Soleil 2 Case Study Help total possessions, shows that the company is rather effective in including value to its assets through its profits. The development in assets shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the circulation of total revenues of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Tour Planning At Cirque Du Soleil 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative products and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the Tour Planning At Cirque Du Soleil 2 Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Tour Planning At Cirque Du Soleil 2 Case Study Solution consists of the concerns of ecological communities 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. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the virtual libraries on specific websites. The altering customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Tour Planning At Cirque Du Soleil 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry 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 files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Tour Planning At Cirque Du Soleil 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a significant focus on educational publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Tour Planning At Cirque Du Soleil 2 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate option to avoid the declining market development. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially collects the information associated with the customer demand, the possible markets, the federal government guidelines and the information associated with the rivals presented in the market. After that, the business ought to decide one prospective sector for its preliminary offering. It should collect research that how it might differentiate its digital publishing from the existing competitors' items. The actions above the business need to go for the preliminary offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a risk to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
