Zen And The Art Of Simplicity Case Study Solution and Analysis
Intro
Zen And The Art Of Simplicity Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and Zen And The Art Of Simplicity Case Study Help in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Zen And The Art Of Simplicity Case Study Analysis has particular strengths that can be made use of to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Zen And The Art Of Simplicity Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position allows the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Zen And The Art Of Simplicity Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Zen And The Art Of Simplicity Case Study Help too, however the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain hazards to Zen And The Art Of Simplicity Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Zen And The Art Of Simplicity Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual overall incomes of Zen And The Art Of Simplicity Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in attracting a large number of customers at a prospective rate.
Together with it, the 2nd chart which reveals the annual growth in the Zen And The Art Of Simplicity Case Study Help overall possessions, shows that the business is rather efficient in adding worth to its assets through its profits. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided data could be the analysis relating to the circulation of total profits 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 might move towards other service sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the performance 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 might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Zen And The Art Of Simplicity Case Study Analysis business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Zen And The Art Of Simplicity Case Study Analysis consists of the issues of ecological neighborhoods 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. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital knowing increase the danger of substitution for the industry.
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. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Zen And The Art Of Simplicity Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. 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 Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Zen And The Art Of Simplicity Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate service to prevent the declining market growth. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the consumer demand, the prospective markets, the federal government regulations and the data related to the rivals 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 implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a hazard to the business's long term presence, however the scenario can be controlled by considering an advancement plan in the future. The business might think about introducing 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.
