Cypress Semiconductor Federation Of Entrepreneurs Case Study Solution and Analysis
Intro
Cypress Semiconductor Federation Of Entrepreneurs Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Cypress Semiconductor Federation Of Entrepreneurs Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cypress Semiconductor Federation Of Entrepreneurs Case Study Help has specific strengths that can be made use of to lower the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cypress Semiconductor Federation Of Entrepreneurs Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which might increase constraints for the business in implementing its advancement program. The weaknesses of Cypress Semiconductor Federation Of Entrepreneurs Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Cypress Semiconductor Federation Of Entrepreneurs Case Study Analysis as well, however the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually posed particular threats to Cypress Semiconductor Federation Of Entrepreneurs Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Cypress Semiconductor Federation Of Entrepreneurs Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals 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 particular strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall earnings of Cypress Semiconductor Federation Of Entrepreneurs Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is rather efficient in drawing in a big number of clients at a potential cost.
Together with it, the 2nd chart which shows the annual growth in the Cypress Semiconductor Federation Of Entrepreneurs Case Study Help overall assets, reveals that the business is rather efficient in adding worth to its possessions through its profits. The development in possessions shows that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis concerning the circulation of total earnings of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided 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 federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces affecting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Cypress Semiconductor Federation Of Entrepreneurs Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful materials etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Cypress Semiconductor Federation Of Entrepreneurs Case Study Solution. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Cypress Semiconductor Federation Of Entrepreneurs Case Study Solution includes the concerns of ecological communities 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 harmful for the environment.
Legal.
Legal guidelines 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 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Cypress Semiconductor Federation Of Entrepreneurs Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 marketplace saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Cypress Semiconductor Federation Of Entrepreneurs Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat 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 service sections to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant solution to avoid the declining industry development. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first gathers the data related to the customer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves 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 decreasing since 2008, showing a danger to the company's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
