Eastman Kodak Company Restructuring A Melting Point Case Study Solution and Analysis
Introduction
Eastman Kodak Company Restructuring A Melting Point Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and Eastman Kodak Company Restructuring A Melting Point Case Study Help in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement 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 Point Case Study Help has particular strengths that can be used to decrease the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Eastman Kodak Company Restructuring A Melting Point Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong financial position allows the company to think about a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weaknesses of Eastman Kodak Company Restructuring A Melting Point Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Eastman Kodak Company Restructuring A Melting Point Case Study Analysis as well, however the development could be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has positioned specific risks to Eastman Kodak Company Restructuring A Melting Point Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Eastman Kodak Company Restructuring A Melting Point Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. The overall financial efficiency of the business might be examined by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Eastman Kodak Company Restructuring A Melting Point Case Study Solution is growing and the company is quite efficient in attracting a large number of customers at a prospective price.
Together with it, the 2nd chart which reveals the annual development in the Eastman Kodak Company Restructuring A Melting Point Case Study Solution total properties, shows that the company is rather efficient in adding worth to its assets through its revenues. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis concerning the distribution 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 shown in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Eastman Kodak Company Restructuring A Melting Point Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Eastman Kodak Company Restructuring A Melting Point Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Eastman Kodak Company Restructuring A Melting Point Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Eastman Kodak Company Restructuring A Melting Point Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in different market sections, with a major concentrate on academic publications. CIP functions as a hazard 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 Eastman Kodak Company Restructuring A Melting Point Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers 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 variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 company sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing industry development. For that reason, introduction of digital publishing might show to be an instant solution with low quantity of risk for the business. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data related to the consumer demand, the prospective markets, the government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, revealing a threat to the company's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
