Tournaments For Ideas 2 Case Study Solution and Analysis
Introduction
Tournaments For Ideas 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing info and interaction services. Major organisation sections of the company include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Tournaments For Ideas 2 Case Study Solution has become a specialized information company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and Tournaments For Ideas 2 Case Study Help in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 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
Tournaments For Ideas 2 Case Study Solution has particular strengths that can be used to reduce the hazards, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Tournaments For Ideas 2 Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position enables the business to consider numerous development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Tournaments For Ideas 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Tournaments For Ideas 2 Case Study Help as well, however the development could be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has posed particular threats to Tournaments For Ideas 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Tournaments For Ideas 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be examined from the Appendix III that the annual total incomes of Tournaments For Ideas 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible cost.
In addition to it, the 2nd chart which shows the annual growth in the Tournaments For Ideas 2 Case Study Analysis overall assets, reveals that the business is rather effective in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Tournaments For Ideas 2 Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Tournaments For Ideas 2 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Tournaments For Ideas 2 Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of replacement 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 Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along 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 Tournaments For Ideas 2 Case Study Help consist of the suppliers of the paper for publishing files. 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.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Tournaments For Ideas 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market segments, with a major focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Tournaments For Ideas 2 Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors 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 need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an instant option to prevent the declining industry growth. Introduction of digital publishing could prove to be an instant option with low quantity of threat for the company. However, the business might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data related to the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, revealing a hazard to the company's long term presence, but the situation can be managed by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
