Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution and Analysis
Introduction
Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and interaction services. Major service segments of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help has become a specialized information company and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution has specific strengths that can be utilized to decrease the risks, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong financial position enables the company to think about several development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase constraints for the company in implementing its development program. The weak points of Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Analysis too, but the growth could be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has postured specific risks to Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly total profits of Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help throughout 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 quite effective in bring in a big number of consumers at a prospective price.
Along with it, the second chart which reveals the yearly growth in the Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help total possessions, reveals that the business is quite effective in adding worth to its properties through its incomes. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the circulation of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution. Nevertheless, the customer 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 changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology together with the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks second and third in different market segments, with a major concentrate on educational publications. CIP functions as a danger 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 Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Triumph Of The Commons Wikia And The Commercialization Of Open Source Communities In 2009 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk 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 service sections to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant solution to prevent the declining market growth. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business ought to initially gathers the information related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
