Urban Decay A Great Idea Case Study Solution and Analysis
Introduction
Urban Decay A Great Idea Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Urban Decay A Great Idea Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several questions 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 abilities of the company 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
Urban Decay A Great Idea Case Study Help has certain strengths that can be used to lower the hazards, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Urban Decay A Great Idea Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Urban Decay A Great Idea Case Study Solution are offered as follows;
• Despite of being a science and innovation 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 certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting Urban Decay A Great Idea Case Study Analysis as well, but the growth could be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has positioned particular dangers to Urban Decay A Great Idea Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Urban Decay A Great Idea Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be calculated. However, the general financial efficiency of the business could be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Urban Decay A Great Idea Case Study Analysis is growing and the company is rather efficient in bring in a a great deal of consumers at a prospective cost.
Along with it, the second chart which shows the yearly development in the Urban Decay A Great Idea Case Study Help total properties, shows that the business is rather effective in adding value to its possessions through its profits. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of total incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Urban Decay A Great Idea Case Study Solution consists of the concerns of environmental neighborhoods 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Urban Decay A Great Idea Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Urban Decay A Great Idea Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Urban Decay A Great Idea Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry development. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the information associated with the consumer demand, the possible markets, the federal government policies and the data connected to the competitors provided in the market. After that, the business must choose one potential sector for its preliminary offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a hazard to the company's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
