Web Tracker Case Study Solution and Analysis
Introduction
Web Tracker Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and Web Tracker Case Study Analysis in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 abilities of the company could be utilized 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
Web Tracker Case Study Solution has certain strengths that can be utilized to lower the hazards, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Web Tracker Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position enables the business to consider a number of development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Web Tracker Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Web Tracker Case Study Solution as well, however the growth might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has presented specific dangers to Web Tracker Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Web Tracker Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The total monetary efficiency of the company could be examined by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Web Tracker Case Study Solution is growing and the company is rather efficient in attracting a a great deal of clients at a prospective rate.
In addition to it, the 2nd chart which shows the yearly development in the Web Tracker Case Study Help overall possessions, reveals that the business is rather effective in including value to its properties through its earnings. The development in assets shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis concerning the distribution of overall incomes of the business. Major part of the profits 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 segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Web Tracker Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful materials and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Web Tracker Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Web Tracker Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats 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 existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Web Tracker Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry 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 Web Tracker Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Web Tracker Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat 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 value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate option to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an immediate solution with low quantity of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing because 2008, showing a hazard to the company's long term existence, but the scenario can be managed by considering a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
