Directing Creativity The Art And Craft Of Leadership Case Study Solution and Analysis
Intro
Directing Creativity The Art And Craft Of Leadership 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 service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Directing Creativity The Art And Craft Of Leadership Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 company could be made use of 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
Directing Creativity The Art And Craft Of Leadership Case Study Help has specific strengths that can be utilized to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Directing Creativity The Art And Craft Of Leadership Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position enables the company to think about numerous development opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restrictions for the business in executing its development program. The weak points of Directing Creativity The Art And Craft Of Leadership Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Directing Creativity The Art And Craft Of Leadership Case Study Help too, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned particular dangers to Directing Creativity The Art And Craft Of Leadership Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Directing Creativity The Art And Craft Of Leadership Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry along with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. The overall financial efficiency of the business could be evaluated by using the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Directing Creativity The Art And Craft Of Leadership Case Study Solution is growing and the company is quite effective in attracting a large number of consumers at a potential rate.
In addition to it, the second graph which reveals the annual development in the Directing Creativity The Art And Craft Of Leadership Case Study Solution overall properties, reveals that the company is rather efficient in including value to its possessions through its incomes. The growth in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the circulation of total revenues of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable 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 directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Directing Creativity The Art And Craft Of Leadership Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Directing Creativity The Art And Craft Of Leadership Case Study Analysis in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the overall business at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Directing Creativity The Art And Craft Of Leadership Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Directing Creativity The Art And Craft Of Leadership Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Directing Creativity The Art And Craft Of Leadership Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Directing Creativity The Art And Craft Of Leadership Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on educational publications. CIP functions as a threat 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 marketplace share of Directing Creativity The Art And Craft Of Leadership Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Directing Creativity The Art And Craft Of Leadership Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding 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 brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
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 items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate service to avoid the decreasing market development. The company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the data associated with the customer demand, the prospective markets, the government guidelines and the data related to the competitors provided in the market. After that, the business should choose one possible segment for its initial offering. It must collect research that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business must opt for the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
