Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution and Analysis
Intro
Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis has certain strengths that can be made use of to minimize the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position enables the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in executing its development program. The weak points of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis as well, however the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific hazards to Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. The overall monetary performance of the company could be evaluated by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution is growing and the company is quite efficient in bring in a large number of customers at a possible cost.
Along with it, the second graph which shows the yearly growth in the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help total possessions, reveals that the business is quite effective in including value to its assets through its incomes. The growth in assets reveals that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the circulation of overall incomes of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books impact the general organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations 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 Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace 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 rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Eastman Kodak Company Restructuring A Melting Ice Cube 2 Case Study Help include;.
• Chemical Industry 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant option to avoid the declining industry development. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the data related to the customer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, revealing a threat to the company's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
