Canadian National Railway Company Case Study Solution and Analysis
Intro
Canadian National Railway Company Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Canadian National Railway Company Case Study Solution has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation 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 utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Canadian National Railway Company Case Study Solution has certain strengths that can be made use of to minimize the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Canadian National Railway Company Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong monetary position permits the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Canadian National Railway Company Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways 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 plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Canadian National Railway Company Case Study Help as well, but the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually posed particular hazards to Canadian National Railway Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Canadian National Railway Company Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total profits of Canadian National Railway Company Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in drawing in a big number of customers at a prospective rate.
In addition to it, the second chart which shows the annual growth in the Canadian National Railway Company Case Study Help total possessions, reveals that the company is rather effective in including value to its properties through its revenues. The growth in possessions reveals that the total value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of total revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the business 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 could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Canadian National Railway Company Case Study Solution consists of the concerns of ecological communities over the use 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 must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Canadian National Railway Company Case Study Solution consist of the providers 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 supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
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 greatest market share in the Chinese publishing market. Major rivals of Canadian National Railway Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks second and third in numerous market segments, with a major focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Canadian National Railway Company Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company 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 industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry development. For that reason, introduction of digital publishing might prove to be an instant option with low quantity of risk for the company. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should first collects the information related to the consumer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a danger to the company's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
