Two And A Half Cheers For Conscious Capitalism Case Study Solution and Analysis
Intro
Two And A Half Cheers For Conscious Capitalism Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Two And A Half Cheers For Conscious Capitalism Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The change 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 business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Two And A Half Cheers For Conscious Capitalism Case Study Analysis has particular strengths that can be made use of to minimize the threats, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Two And A Half Cheers For Conscious Capitalism Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position allows the company to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Two And A Half Cheers For Conscious Capitalism Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, 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 development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is declining given that 2008, affecting Two And A Half Cheers For Conscious Capitalism Case Study Analysis as well, however the growth could be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented certain risks to Two And A Half Cheers For Conscious Capitalism Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Two And A Half Cheers For Conscious Capitalism Case Study Solution due to the consumer 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 acquire a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the overall financial performance of the company might be analyzed by using the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Two And A Half Cheers For Conscious Capitalism Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of customers at a prospective price.
In addition to it, the 2nd chart which reveals the yearly development in the Two And A Half Cheers For Conscious Capitalism Case Study Solution total assets, reveals that the company is rather effective in including value to its possessions through its incomes. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of overall profits of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered 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, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Two And A Half Cheers For Conscious Capitalism Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Two And A Half Cheers For Conscious Capitalism Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on specific sites. The altering consumer choices towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number 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 competition for CMP.
Bargaining Power of Supplier.
The major providers of the Two And A Half Cheers For Conscious Capitalism Case Study Solution consist of 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 market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Two And A Half Cheers For Conscious Capitalism Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a significant focus on instructional publications. CIP functions 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 marketplace share of Two And A Half Cheers For Conscious Capitalism Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company require an instant option to avoid the declining market development. Introduction of digital publishing could show to be an instant solution with low amount of danger for the business. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first gathers the information associated with the customer need, the prospective markets, the government guidelines and the information connected to the rivals provided in the market. After that, the company needs to choose one prospective sector for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
