Whose Money Is It Anyway A 2 Case Study Solution and Analysis
Introduction
Whose Money Is It Anyway A 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing information and communication services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Whose Money Is It Anyway A 2 Case Study Help has become a specialized info service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Whose Money Is It Anyway A 2 Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Whose Money Is It Anyway A 2 Case Study Help has certain strengths that can be utilized to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Whose Money Is It Anyway A 2 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position permits the company to think about several advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its advancement program. The weak points of Whose Money Is It Anyway A 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Whose Money Is It Anyway A 2 Case Study Solution also, but the growth could be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific threats to Whose Money Is It Anyway A 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Whose Money Is It Anyway A 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall profits of Whose Money Is It Anyway A 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in bring in a large number of customers at a possible price.
Together with it, the second chart which shows the annual development in the Whose Money Is It Anyway A 2 Case Study Help overall possessions, shows that the business is rather effective in including worth to its assets through its profits. The development in properties shows that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis regarding the circulation of total revenues of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the total political forces impacting Whose Money Is It Anyway A 2 Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Whose Money Is It Anyway A 2 Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Whose Money Is It Anyway A 2 Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on particular websites. The altering customer choices towards digital learning increase the threat of substitution for the industry.
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 and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Whose Money Is It Anyway A 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market 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 prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Whose Money Is It Anyway A 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate service to prevent the decreasing industry growth. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should initially collects the data related to the customer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, however the situation can be managed by considering an advancement 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 avoid the threat of failure for entrance in the new markets.
