West Ham United Football Clubs Olympic Stadium Move 2 Case Study Solution and Analysis
Intro
West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and West Ham United Football Clubs Olympic Stadium Move 2 Case Study Solution in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 situation? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis has certain strengths that can be made use of to lower the threats, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has positioned certain hazards to West Ham United Football Clubs Olympic Stadium Move 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The general financial performance of the company might be evaluated by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis is growing and the business is rather efficient in bring in a a great deal of consumers at a prospective price.
Together with it, the second chart which shows the yearly growth in the West Ham United Football Clubs Olympic Stadium Move 2 Case Study Help total possessions, reveals that the business is rather efficient in adding value to its assets through its incomes. The growth in properties shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis regarding the circulation of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the company and the current patterns 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 might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting West Ham United Football Clubs Olympic Stadium Move 2 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design 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.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the released files is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the West Ham United Football Clubs Olympic Stadium Move 2 Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a major focus on academic publications. CIP functions 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 marketplace share of West Ham United Football Clubs Olympic Stadium Move 2 Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise among the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the declining industry growth. Intro of digital publishing could prove to be an immediate option with low amount of threat for the company. However, the company 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 company must first collects the data related to the consumer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
