Flexicurity Riding Into The Future Case Study Solution and Analysis
Intro
Flexicurity Riding Into The Future Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and Flexicurity Riding Into The Future Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions 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 capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Flexicurity Riding Into The Future Case Study Help has particular strengths that can be utilized to decrease the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Flexicurity Riding Into The Future 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 prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position allows the company to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restraints for the company in executing its development program. The weaknesses of Flexicurity Riding Into The Future Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Flexicurity Riding Into The Future Case Study Help as well, however the development might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Flexicurity Riding Into The Future Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Flexicurity Riding Into The Future Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be determined. Nevertheless, the general financial performance of the business could be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Flexicurity Riding Into The Future Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of customers at a potential rate.
Along with it, the 2nd chart which reveals the yearly growth in the Flexicurity Riding Into The Future Case Study Solution total possessions, shows that the company is quite effective in adding worth to its assets through its incomes. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the circulation of overall earnings of the company. Major part of the profits 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 business sectors with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces impacting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading helpful materials etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Flexicurity Riding Into The Future Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Flexicurity Riding Into The Future Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on specific websites. The altering customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Flexicurity Riding Into The Future Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Flexicurity Riding Into The Future Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a major concentrate on instructional publications. CIP serves as a hazard 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 marketplace share of Flexicurity Riding Into The Future Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Flexicurity Riding Into The Future Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an instant option to avoid the declining market growth. For that reason, introduction of digital publishing might show to be an immediate solution with low quantity of threat for the company. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer demand, the potential markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business ought 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 market is declining considering that 2008, showing a hazard to the business's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
