Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution and Analysis
Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing information and interaction services. Major organisation segments of the company consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports and so on. Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help has become a specialized information supplier and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous concerns 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 utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution has specific strengths that can be utilized to reduce the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the business to consider a number of development opportunities with no worry of raising fund externally.
In addition to the strengths, the company has particular weaknesses which might increase restraints for the business in executing its development program. The weaknesses of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing industry is declining because 2008, impacting Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help as well, however the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular dangers to Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the threat of losing the customer base.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. The general monetary efficiency of the company might be analyzed by using the graphs offered in the case Appendices. It could be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis is growing and the business is rather effective in bring in a a great deal of customers at a possible price.
Along with it, the second graph which reveals the yearly growth in the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help overall properties, reveals that the company is rather efficient in including value to its assets through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total revenues of the business. Major part of the profits 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 business segments with a possible development to achieve its future development objective.
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help consists of 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 should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first 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.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
CMP operates in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the company require an instant option to prevent the decreasing industry growth. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company must first collects the data related to the consumer demand, the possible markets, the government regulations and the information associated with the rivals presented in the market. After that, the business must choose one possible sector for its initial offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business need to go for the initial offering. If the initial offering proves a success, the business should go for the other markets. In this method the company would have the ability to implement its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.