Wal Mart The Store Wars 2 Case Study Solution and Analysis
Introduction
Wal Mart The Store Wars 2 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 service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Wal Mart The Store Wars 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 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
Wal Mart The Store Wars 2 Case Study Help has certain strengths that can be used to reduce the hazards, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Wal Mart The Store Wars 2 Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the business to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its development program. The weak points of Wal Mart The Store Wars 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Wal Mart The Store Wars 2 Case Study Solution too, however the development might be revived by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition 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 huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has posed certain threats to Wal Mart The Store Wars 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Wal Mart The Store Wars 2 Case Study Analysis due to the customer shift towards virtual 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 acquire a strong customer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total incomes of Wal Mart The Store Wars 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a large number of clients at a prospective rate.
Together with it, the 2nd chart which shows the yearly development in the Wal Mart The Store Wars 2 Case Study Help total possessions, shows that the business is quite efficient in including value to its properties through its incomes. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the distribution of total profits of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Wal Mart The Store Wars 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Wal Mart The Store Wars 2 Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful materials etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Wal Mart The Store Wars 2 Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology together with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Wal Mart The Store Wars 2 Case Study Help consists of 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 disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Wal Mart The Store Wars 2 Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Wal Mart The Store Wars 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Wal Mart The Store Wars 2 Case Study Solution and CIP. It is likewise one of the popular 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 number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat 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 current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market growth. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially collects the information associated with the customer need, the potential markets, the federal government guidelines and the data associated with the competitors provided in the market. After that, the company ought to decide one possible segment for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the company should go for the initial offering. If the initial offering proves a success, the business ought to choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
