Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution and Analysis
Intro
Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing info and interaction services. Major organisation sectors of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis has actually become a specialized info provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns 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 capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution has certain strengths that can be used to minimize the hazards, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the business to think about a number of development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which could increase restrictions for the business in implementing its development program. The weak points of Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Help are offered 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 development. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution as well, however the growth could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing 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 reduce its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured certain hazards to Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly overall revenues of Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a potential price.
Together with it, the second chart which shows the annual growth in the Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution total properties, shows that the business is quite effective in adding worth to its assets through its revenues. The development in assets shows that the overall value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of total earnings of the business. Huge part of the earnings 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 organisation sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials etc. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning 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 Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the virtual libraries on certain websites. The altering customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Warner Bros Pictures The Harry Potter Dilemma 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences 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 option with low quantity of threat for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially gathers the data connected to the customer demand, the prospective markets, the federal government policies and the data connected to the competitors provided in the market. After that, the business ought to decide one potential sector for its initial offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' products. The steps above the business ought to go for the preliminary offering. If the initial offering proves a success, the company ought to choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a threat to the company's long term existence, but the circumstance 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 advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
