Canon Inc Case Study Solution and Analysis
Intro
Canon Inc 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 comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and Canon Inc Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 business could be utilized 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
Canon Inc Case Study Analysis has certain strengths that can be utilized to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Canon Inc Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the company to consider a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restraints for the business in executing its development program. The weak points of Canon Inc Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Canon Inc Case Study Help as well, however the growth could be revived by availing particular opportunities provided in the market. The marketplace chances 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 think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has postured certain dangers to Canon Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Canon Inc Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall incomes of Canon Inc Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible price.
In addition to it, the second graph which shows the yearly growth in the Canon Inc Case Study Analysis overall possessions, shows that the business is rather efficient in including worth to its properties through its incomes. The growth in assets shows that the overall value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of overall revenues of the business. 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 business sections with a potential development to achieve its future development objective.
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 company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the general political forces impacting Canon Inc Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Canon Inc Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Canon Inc Case Study Solution consists of the concerns of ecological neighborhoods 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 used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on specific sites. The altering consumer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry 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. 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 Canon Inc Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry 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 Canon Inc Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major focus on academic publications. CIP acts 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 marketplace share of Canon Inc Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Canon Inc Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need 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 rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an instant option to avoid the decreasing industry development. Introduction of digital publishing might prove to be an instant option with low quantity of danger for the business. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially gathers the data related to the customer demand, the potential markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to 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 industry is declining since 2008, revealing a risk to the company's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
