Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Solution and Analysis
Introduction
Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and interaction services. Significant business sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help has become a specialized information company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Solution has specific strengths that can be made use of to decrease the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong financial position allows the company to consider a number of development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways 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 growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Solution as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific threats to Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. The overall financial efficiency of the business could be evaluated by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help is growing and the business is quite effective in bring in a large number of clients at a potential rate.
Together with it, the 2nd graph which shows the yearly development in the Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help total properties, shows that the company is quite efficient in adding worth to its possessions through its revenues. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the distribution of total earnings 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 business might move towards other organisation sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different 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 company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely 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 Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Analysis company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
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 meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Analysis includes the issues 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 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 Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Help consist of the providers of the paper for releasing files. 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 Purchaser.
Haggling 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 market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Corporate Governance Standards Qatar Telecom Acquires Wataniya Telecom Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing market development. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data associated with the customer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the company must choose one possible section for its preliminary offering. It should collect research study that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business should opt for the initial offering. The company should go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
