What Problems Does Crowdfunding Solve Case Study Solution and Analysis
Introduction
What Problems Does Crowdfunding Solve Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, What Problems Does Crowdfunding Solve Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
What Problems Does Crowdfunding Solve Case Study Help has particular strengths that can be utilized to reduce the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of What Problems Does Crowdfunding Solve Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position allows the business to think about a number of development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weak points of What Problems Does Crowdfunding Solve Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting What Problems Does Crowdfunding Solve Case Study Analysis as well, however the development might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually presented specific hazards to What Problems Does Crowdfunding Solve Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of What Problems Does Crowdfunding Solve Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly total earnings of What Problems Does Crowdfunding Solve Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in drawing in a big number of customers at a potential rate.
In addition to it, the 2nd graph which shows the yearly development in the What Problems Does Crowdfunding Solve Case Study Help overall assets, reveals that the business is rather effective in adding worth to its possessions through its profits. The development in assets shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the provided information could be the analysis concerning the distribution of total revenues of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology along with the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting What Problems Does Crowdfunding Solve Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market 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 market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the What Problems Does Crowdfunding Solve Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of What Problems Does Crowdfunding Solve Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as What Problems Does Crowdfunding Solve Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation 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 external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an instant solution to prevent the decreasing market growth. Therefore, intro of digital publishing might prove to be an immediate service with low quantity of danger for the business. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first collects the data related to the customer demand, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
