Acer Incorporated An Analysis And Strategy Case Study Solution and Analysis
Introduction
Acer Incorporated An Analysis And Strategy Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing market in general and Acer Incorporated An Analysis And Strategy Case Study Solution in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the company could be used 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
Acer Incorporated An Analysis And Strategy Case Study Help has certain strengths that can be utilized to decrease the dangers, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Acer Incorporated An Analysis And Strategy Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its clients.
• Strong financial position allows the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase constraints for the company in executing its advancement program. The weak points of Acer Incorporated An Analysis And Strategy Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Acer Incorporated An Analysis And Strategy Case Study Help as well, but the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually presented particular dangers to Acer Incorporated An Analysis And Strategy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Acer Incorporated An Analysis And Strategy Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual overall profits of Acer Incorporated An Analysis And Strategy Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a potential rate.
Along with it, the 2nd chart which shows the annual development in the Acer Incorporated An Analysis And Strategy Case Study Solution total possessions, shows that the company is quite efficient in adding value to its possessions through its profits. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis relating to the circulation of total revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
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 meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Acer Incorporated An Analysis And Strategy Case Study Analysis consists of the concerns of environmental communities over the usage 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 should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Acer Incorporated An Analysis And Strategy Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly 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. Significant competitors of Acer Incorporated An Analysis And Strategy Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on academic publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Acer Incorporated An Analysis And Strategy Case Study Analysis quickly in the current market circumstance.
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 sixth in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
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.
Suggestions
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the decreasing industry development. Introduction of digital publishing could show to be an immediate service with low amount of risk for the company. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must initially collects the information associated with the customer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. After that, the business should choose one possible section for its preliminary offering. It should collect research study that how it could separate its digital publishing from the existing rivals' items. After all the actions above the company should go for the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a danger to the company's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
