Corporate Culture And Strategy 3 Case Study Solution and Analysis
Introduction
Corporate Culture And Strategy 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Corporate Culture And Strategy 3 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Corporate Culture And Strategy 3 Case Study Analysis has specific strengths that can be made use of to reduce the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Corporate Culture And Strategy 3 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong financial position allows the business to think about numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Corporate Culture And Strategy 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting Corporate Culture And Strategy 3 Case Study Help as well, but the growth could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has postured particular risks to Corporate Culture And Strategy 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Corporate Culture And Strategy 3 Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the general financial performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Corporate Culture And Strategy 3 Case Study Help is growing and the company is quite effective in drawing in a large number of clients at a prospective cost.
In addition to it, the second chart which reveals the annual growth in the Corporate Culture And Strategy 3 Case Study Help overall properties, reveals that the business is rather efficient in including value to its assets through its revenues. The growth in assets reveals that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of total earnings of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the efficiency of the business and the recent patterns 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 might have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Corporate Culture And Strategy 3 Case Study Analysis business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Corporate Culture And Strategy 3 Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books affect the general service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Corporate Culture And Strategy 3 Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Corporate Culture And Strategy 3 Case Study Analysis consists of the issues of ecological neighborhoods 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 used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Corporate Culture And Strategy 3 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Corporate Culture And Strategy 3 Case Study Solution 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Corporate Culture And Strategy 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-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 company in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the declining industry development. Intro of digital publishing could prove to be an instant option with low quantity of threat for the business. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the data associated with the customer need, the prospective markets, the government regulations and the information associated with the competitors provided in the market. After that, the company must choose one prospective segment for its initial offering. It should collect research that how it could distinguish its digital publishing from the existing rivals' products. The steps above the company must go for the preliminary offering. If the initial offering proves a success, the business should opt for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, showing a hazard to the company's long term presence, but the circumstance can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
