Whose Money Is It Anyway A Case Study Solution and Analysis
Introduction
Whose Money Is It Anyway A Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing information and interaction services. Major business sectors of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports etc. Whose Money Is It Anyway A Case Study Analysis has ended up being a specialized information company and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Whose Money Is It Anyway A Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several concerns 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 capabilities of the company could be utilized to pursue the future advancement 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 Case Study Solution has specific strengths that can be utilized to minimize the threats, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Whose Money Is It Anyway A Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position enables the company to consider numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Whose Money Is It Anyway A Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Whose Money Is It Anyway A Case Study Help also, however the growth could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to Whose Money Is It Anyway A Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Whose Money Is It Anyway A Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of Whose Money Is It Anyway A Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather effective in bring in a large number of clients at a possible price.
In addition to it, the second graph which reveals the annual growth in the Whose Money Is It Anyway A Case Study Help total properties, shows that the business is rather effective in including worth to its properties through its earnings. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the circulation 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 business could move towards other service segments with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Whose Money Is It Anyway A Case Study Analysis business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the Whose Money Is It Anyway A Case Study Help. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Whose Money Is It Anyway A Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Whose Money Is It Anyway A Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Whose Money Is It Anyway A Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the business need an immediate service to prevent the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant option with low quantity of danger for the business. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first collects the data related to the customer need, the possible markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a danger to the business's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
