Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution and Analysis
Introduction
Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing info and interaction services. Significant business sectors of the company include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its major items consist of books, regulars, online media, exhibitions, research reports etc. Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution has become a specialized info provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of questions 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 capabilities of the company could be utilized 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
Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis has certain strengths that can be utilized to lower the hazards, get rid of the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to think about several advancement chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution as well, however the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by using 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 lower its dependence over Chinese markets by utilizing its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has presented specific risks to Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total revenues of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in drawing in a large number of clients at a possible rate.
Together with it, the 2nd graph which shows the yearly growth in the Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution overall assets, reveals that the company is rather effective in adding worth to its assets through its earnings. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the distribution of overall revenues of the company. 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 could move towards other business sections with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the company and the recent patterns 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 could have a substantial impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact 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 numerous market segments, with a significant focus on instructional publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Why Everything You Think You Know About Growth Is Probably Wrong 2 Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. For that reason, introduction of digital publishing could show to be an immediate solution with low amount of threat for the company. 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 business ought to first gathers the data related to the customer need, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, however the situation can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
