Townebank Of David And Goliaths 2 Case Study Solution and Analysis
Introduction
Townebank Of David And Goliaths 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Townebank Of David And Goliaths 2 Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Townebank Of David And Goliaths 2 Case Study Analysis has certain strengths that can be utilized to reduce the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Townebank Of David And Goliaths 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the company to consider several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weak points of Townebank Of David And Goliaths 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting Townebank Of David And Goliaths 2 Case Study Analysis also, but the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has actually postured certain risks to Townebank Of David And Goliaths 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Townebank Of David And Goliaths 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the threat of losing the customer 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 annual overall earnings of Townebank Of David And Goliaths 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in bring in a big number of customers at a potential price.
Together with it, the second graph which shows the annual growth in the Townebank Of David And Goliaths 2 Case Study Solution overall properties, shows that the business is quite effective in adding worth to its assets through its earnings. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the circulation of total revenues of the business. Major part of the profits 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 business sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the recent 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 significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Townebank Of David And Goliaths 2 Case Study Analysis in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the general company at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative materials and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Townebank Of David And Goliaths 2 Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Townebank Of David And Goliaths 2 Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Townebank Of David And Goliaths 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Townebank Of David And Goliaths 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Townebank Of David And Goliaths 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business need an instant service to prevent the declining industry growth. Introduction of digital publishing could show to be an immediate service with low amount of threat for the company. The business might likewise 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 business needs to first gathers the data related to the customer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
