Whose Money Is It Anyway B 2 Case Study Solution and Analysis
Introduction
Whose Money Is It Anyway B 2 Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Whose Money Is It Anyway B 2 Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 situation? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whose Money Is It Anyway B 2 Case Study Analysis has particular strengths that can be made use of to decrease the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Whose Money Is It Anyway B 2 Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position permits the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restraints for the business in executing its advancement program. The weak points of Whose Money Is It Anyway B 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, 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 must propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Whose Money Is It Anyway B 2 Case Study Help as well, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities 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 could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Whose Money Is It Anyway B 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Whose Money Is It Anyway B 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the yearly total profits of Whose Money Is It Anyway B 2 Case Study Solution 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 efficient in attracting a big number of clients at a potential cost.
Along with it, the second chart which shows the annual development in the Whose Money Is It Anyway B 2 Case Study Help total possessions, reveals that the company is quite efficient in adding value to its assets through its earnings. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the circulation of overall earnings of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered 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 highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Whose Money Is It Anyway B 2 Case Study Analysis company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Whose Money Is It Anyway B 2 Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Whose Money Is It Anyway B 2 Case Study Analysis consists of 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 must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of alternative 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 etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Whose Money Is It Anyway B 2 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, 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 B 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a significant focus on instructional publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Whose Money Is It Anyway B 2 Case Study Help quickly 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 period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must first gathers the data related to the consumer need, the possible markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
