Acer Incorporated Core Management Principles Case Study Solution and Analysis
Introduction
Acer Incorporated Core Management Principles Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Acer Incorporated Core Management Principles Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Acer Incorporated Core Management Principles Case Study Help has certain strengths that can be used to decrease the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Acer Incorporated Core Management Principles Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Acer Incorporated Core Management Principles Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Acer Incorporated Core Management Principles Case Study Solution as well, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has actually postured specific risks to Acer Incorporated Core Management Principles Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Acer Incorporated Core Management Principles Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the company might be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Acer Incorporated Core Management Principles Case Study Solution is growing and the company is rather efficient in drawing in a large number of clients at a potential cost.
Along with it, the second graph which reveals the yearly growth in the Acer Incorporated Core Management Principles Case Study Solution total assets, shows that the company is quite effective in including worth to its properties through its revenues. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis concerning the circulation of overall earnings of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the business and the current trends 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 significant impact on the mindset of the people about the communist ideology of the federal 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 stated that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Acer Incorporated Core Management Principles Case Study Help consists of the issues of environmental 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the files presented in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive competition 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. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Acer Incorporated Core Management Principles Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Acer Incorporated Core Management Principles Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a significant focus on instructional publications. CIP functions 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 Acer Incorporated Core Management Principles Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Acer Incorporated Core Management Principles Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially collects the data associated with the consumer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. After that, the company should choose one prospective segment for its initial offering. It should gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business ought to choose the preliminary offering. The company should go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, showing a threat to the company's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
