Whose Life Is This A Creativity Exercise Case Study Solution and Analysis
Intro
Whose Life Is This A Creativity Exercise Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing information and communication services. Major company sections of the company consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Whose Life Is This A Creativity Exercise Case Study Analysis has become a specialized information service provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Whose Life Is This A Creativity Exercise Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business 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
Whose Life Is This A Creativity Exercise Case Study Solution has certain strengths that can be utilized to reduce the hazards, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Whose Life Is This A Creativity Exercise Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position enables the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the company in implementing its development program. The weak points of Whose Life Is This A Creativity Exercise Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Whose Life Is This A Creativity Exercise Case Study Solution as well, but the growth might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually postured particular risks to Whose Life Is This A Creativity Exercise Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Whose Life Is This A Creativity Exercise Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall incomes of Whose Life Is This A Creativity Exercise Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in attracting a big number of consumers at a possible rate.
In addition to it, the 2nd chart which reveals the yearly development in the Whose Life Is This A Creativity Exercise Case Study Help total assets, reveals that the company is quite effective in including worth to its possessions through its incomes. The development in possessions shows that the total value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
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 fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Whose Life Is This A Creativity Exercise Case Study Solution includes the issues of environmental 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 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 Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on 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 Supplier.
The significant providers of the Whose Life Is This A Creativity Exercise Case Study Solution include the suppliers of the paper for publishing files. 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 Buyer.
Haggling 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 purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Whose Life Is This A Creativity Exercise Case Study Solution 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 might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing market development. Intro of digital publishing could prove to be an instant service with low quantity of risk for the business. However, the business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the customer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a risk to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
