Willow Creek Community Church What Really Makes A Difference Case Study Solution and Analysis
Intro
Willow Creek Community Church What Really Makes A Difference Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and Willow Creek Community Church What Really Makes A Difference Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement 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 abilities of the company could be made use of 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
Willow Creek Community Church What Really Makes A Difference Case Study Solution has certain strengths that can be used to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Willow Creek Community Church What Really Makes A Difference Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position allows the business to think about a number of development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weak points which might increase constraints for the business in implementing its development program. The weak points of Willow Creek Community Church What Really Makes A Difference Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting Willow Creek Community Church What Really Makes A Difference Case Study Help too, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to Willow Creek Community Church What Really Makes A Difference Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Willow Creek Community Church What Really Makes A Difference Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competitors increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall monetary performance of the business might be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Willow Creek Community Church What Really Makes A Difference Case Study Solution is growing and the company is rather efficient in drawing in a large number of clients at a potential price.
Together with it, the 2nd graph which reveals the yearly development in the Willow Creek Community Church What Really Makes A Difference Case Study Analysis total assets, shows that the company is rather efficient in adding worth to its assets through its incomes. The development in assets shows that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of overall incomes of the business. Huge part of the profits 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 organisation segments with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Willow Creek Community Church What Really Makes A Difference Case Study Solution organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Willow Creek Community Church What Really Makes A Difference Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall company at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Willow Creek Community Church What Really Makes A Difference Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided 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 bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Willow Creek Community Church What Really Makes A Difference Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Willow Creek Community Church What Really Makes A Difference 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. Established in the exact same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant concentrate on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Willow Creek Community Church What Really Makes A Difference Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Willow Creek Community Church What Really Makes A Difference Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition 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 company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate service to prevent the decreasing market development. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should first gathers the data connected to the consumer need, the potential markets, the federal government policies and the data associated with the rivals provided in the market. After that, the company needs to decide one possible section for its preliminary offering. It should gather research that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business should go for the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
