Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution and Analysis
Introduction
Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing industry in general and Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Help has particular strengths that can be used to minimize the threats, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position enables the company to think about a number of development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its development program. The weak points of Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Analysis as well, but the development could be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned specific hazards to Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total earnings of Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite effective in attracting a big number of consumers at a prospective price.
Together with it, the 2nd chart which reveals the yearly growth in the Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution total possessions, reveals that the company is rather efficient in adding value to its assets through its incomes. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall revenues of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the total service at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable 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. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Solution include 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 Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Bancolombia Talent Culture And Value Creation Management In Mergers Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger 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 present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to prevent the declining industry development. Intro of digital publishing could prove to be an instant service with low amount of risk for the business. However, the business might 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 needs to first gathers the data related to the consumer demand, the possible markets, the government guidelines and the data related to the rivals provided in the market. After that, the business needs to choose one possible section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The steps above the business should go for the initial offering. The business needs to go for the other markets if the initial offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a hazard to the business's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
