Young Presidents Organization 2 Case Study Solution and Analysis
Introduction
Young Presidents Organization 2 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 info company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Young Presidents Organization 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Young Presidents Organization 2 Case Study Help has particular strengths that can be made use of to minimize the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Young Presidents Organization 2 Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong financial position allows the company to think about a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Young Presidents Organization 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Young Presidents Organization 2 Case Study Help as well, however the growth could be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain hazards to Young Presidents Organization 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Young Presidents Organization 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly overall profits of Young Presidents Organization 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is quite effective in attracting a big number of consumers at a potential cost.
Together with it, the 2nd graph which reveals the yearly development in the Young Presidents Organization 2 Case Study Help overall assets, shows that the business is quite efficient in including value to its possessions through its revenues. The development in assets reveals that the overall value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the circulation of total profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Young Presidents Organization 2 Case Study Solution business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Young Presidents Organization 2 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the general service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Young Presidents Organization 2 Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on certain websites. The altering consumer preferences towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Young Presidents Organization 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier 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 needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Young Presidents Organization 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks second and third in different market sectors, with a major focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Young Presidents Organization 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate service to prevent the declining industry development. The business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the information related to the customer need, the potential markets, the federal government guidelines and the information connected to the competitors presented in the market. After that, the company needs to decide one possible sector for its initial offering. It must gather research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the company need to go for the preliminary offering. If the preliminary offering shows a success, the business should opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a threat to the business's long term existence, however the situation can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
