Zen And The Art Of Simplicity Case Study Solution and Analysis
Zen And The Art Of Simplicity Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Zen And The Art Of Simplicity Case Study Solution in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Zen And The Art Of Simplicity Case Study Help has certain strengths that can be made use of to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Zen And The Art Of Simplicity Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the company to consider numerous advancement chances with no fear of raising fund externally.
In addition to the strengths, the company has particular weak points which could increase constraints for the company in executing its development program. The weaknesses of Zen And The Art Of Simplicity Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing market is declining given that 2008, impacting Zen And The Art Of Simplicity Case Study Analysis as well, but the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to Zen And The Art Of Simplicity Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Zen And The Art Of Simplicity Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to presence of high competition increases the threat of losing the client base.
Due to absence of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total incomes of Zen And The Art Of Simplicity Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite effective in attracting a big number of consumers at a possible rate.
Along with it, the second chart which reveals the yearly growth in the Zen And The Art Of Simplicity Case Study Help overall assets, shows that the business is rather effective in adding worth to its properties through its profits. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis relating to the circulation of overall revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a possible growth to attain its future advancement objective.
PESTEL analysis might be performed to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative materials and so on. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Zen And The Art Of Simplicity Case Study Help. However, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Zen And The Art Of Simplicity Case Study Help includes the issues of ecological communities 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 utilized while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the danger of replacement for the industry.
Competitive rivalry 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. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Zen And The Art Of Simplicity Case Study Help consist of 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Zen And The Art Of Simplicity Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the declining market development. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must initially gathers the data associated with the consumer need, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the company ought to choose one prospective section for its initial offering. It needs to gather research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business need to choose the initial offering. If the initial offering proves a success, the company should opt for the other markets. In this method the business would be able to implement its digital publishing program.
The growth 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 an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.