Visioning Information Technology At Cirque Du Soleil 2 Case Study Solution and Analysis
Introduction
Visioning Information Technology At Cirque Du Soleil 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering info, processing details and interaction services. Significant business sectors of the business include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major products consist of books, regulars, online media, exhibits, research study reports etc. Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis has actually become a specialized info provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis has specific strengths that can be made use of to reduce the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Visioning Information Technology At Cirque Du Soleil 2 Case Study Help in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the business to consider a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Visioning Information Technology At Cirque Du Soleil 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company 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 strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis as well, but the growth could be restored by availing certain opportunities provided in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific threats to Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total revenues of Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is quite effective in drawing in a large number of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly growth in the Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis total assets, reveals that the company is quite effective in adding value to its properties through its incomes. The growth in properties reveals that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the distribution of total revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful products and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Visioning Information Technology At Cirque Du Soleil 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Visioning Information Technology At Cirque Du Soleil 2 Case Study Solution includes the issues 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 utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Visioning Information Technology At Cirque Du Soleil 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Visioning Information Technology At Cirque Du Soleil 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market sectors, with a major focus on educational publications. CIP acts 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 might wean the marketplace share of Visioning Information Technology At Cirque Du Soleil 2 Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the 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 company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining market growth. For that reason, intro of digital publishing could show to be an instant service with low amount of threat for the business. Nevertheless, the business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the possible markets, the federal government policies and the information related to the competitors presented in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the business need to opt for the preliminary offering. The company ought to go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a threat to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
