Daniel Kims Dilemma A Case Study Solution and Analysis
Intro
Daniel Kims Dilemma A Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Daniel Kims Dilemma A Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Daniel Kims Dilemma A Case Study Help has certain strengths that can be made use of to decrease the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Daniel Kims Dilemma A Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position allows the business to consider several development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Daniel Kims Dilemma A Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Daniel Kims Dilemma A Case Study Help as well, but the development could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular threats to Daniel Kims Dilemma A Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Daniel Kims Dilemma A Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business could be evaluated by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Daniel Kims Dilemma A Case Study Help is growing and the company is rather efficient in attracting a a great deal of clients at a prospective rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Daniel Kims Dilemma A Case Study Help total possessions, shows that the company is rather efficient in including value to its assets through its incomes. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given information might be the analysis concerning the circulation of total incomes of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP 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 basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine 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 satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Daniel Kims Dilemma A Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved 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 Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Daniel Kims Dilemma A Case Study Solution include the suppliers of the paper for publishing 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 Purchaser.
Haggling power of buyer 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 purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Daniel Kims Dilemma A Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a significant concentrate on educational publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Daniel Kims Dilemma A Case Study Analysis quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Daniel Kims Dilemma A Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 company sections to the new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the declining industry growth. The company could likewise 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 must first collects the data related to the customer demand, the potential markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to 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 industry is declining since 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
