Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Solution and Analysis
Intro
Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing details and communication services. Significant business sectors of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports and so on. Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis has become a specialized details service provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 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
Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Solution has certain strengths that can be used to decrease the threats, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position permits the business to consider several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis are provided as follows;
• Despite of being a science and technology 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 development. It should propose specific growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis as well, but the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented certain hazards to Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. The total financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Help is growing and the business is rather effective in attracting a large number of consumers at a prospective rate.
In addition to it, the second chart which reveals the yearly growth in the Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis overall properties, reveals that the business is rather efficient in adding worth to its properties through its earnings. The growth in assets shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data might be the analysis relating to the distribution of total profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Edward Stroz And Eric Friedberg Co Presidents Of Stroz Friedberg In Class Comments April 15 2011 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must first gathers the data related to the customer demand, the potential markets, the government regulations and the data 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 method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a threat to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
