Yahoo Inc Marissa Mayers Challenge Case Study Solution and Analysis
Intro
Yahoo Inc Marissa Mayers Challenge Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing details and interaction services. Significant service sectors of the company include; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Yahoo Inc Marissa Mayers Challenge Case Study Analysis has become a specialized information service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Yahoo Inc Marissa Mayers Challenge Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 important experience, technical resources and the capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Yahoo Inc Marissa Mayers Challenge Case Study Help has particular strengths that can be used to reduce the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Yahoo Inc Marissa Mayers Challenge Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position enables the business to consider numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Yahoo Inc Marissa Mayers Challenge Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business 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 needs to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, affecting Yahoo Inc Marissa Mayers Challenge Case Study Analysis also, however the growth might be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing 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 reduce its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually postured particular dangers to Yahoo Inc Marissa Mayers Challenge Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Yahoo Inc Marissa Mayers Challenge Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly overall revenues of Yahoo Inc Marissa Mayers Challenge Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a possible cost.
In addition to it, the 2nd chart which shows the yearly development in the Yahoo Inc Marissa Mayers Challenge Case Study Help overall properties, shows that the business is rather efficient in including value to its properties through its revenues. The development in properties reveals that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis regarding the distribution of overall profits of the company. Major 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 company could move towards other organisation segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Yahoo Inc Marissa Mayers Challenge Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies 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 Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Yahoo Inc Marissa Mayers Challenge Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Yahoo Inc Marissa Mayers Challenge Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a major concentrate on educational publications. CIP functions as a threat 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 marketplace share of Yahoo Inc Marissa Mayers Challenge Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 service segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate service to avoid the decreasing industry development. Therefore, introduction of digital publishing might show to be an immediate solution with low amount of threat for the business. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to first collects the data connected to the consumer need, the prospective markets, the federal government regulations and the information connected to the rivals provided in the market. After that, the company should choose one prospective segment for its initial offering. It should collect research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the business must go for the initial offering. If the initial offering shows a success, the company needs to choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a threat to the business's long term presence, but the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
