Ford Motor Company 2 Case Study Solution and Analysis
Ford Motor Company 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Ford Motor Company 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change 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 capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Ford Motor Company 2 Case Study Help has particular strengths that can be used to decrease the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ford Motor Company 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong monetary position allows the business to consider numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase restrictions for the company in executing its development program. The weaknesses of Ford Motor Company 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is decreasing considering that 2008, affecting Ford Motor Company 2 Case Study Help too, but the growth could be revived by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing market has postured particular risks to Ford Motor Company 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Ford Motor Company 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the threat of losing the consumer base.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be determined. Nevertheless, the general financial performance of the company might be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Ford Motor Company 2 Case Study Solution is growing and the company is rather effective in bring in a large number of consumers at a prospective price.
Along with it, the second chart which shows the annual development in the Ford Motor Company 2 Case Study Help overall properties, reveals that the company is quite efficient in including value to its properties through its revenues. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the distribution of total incomes of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a possible growth to attain its future development goal.
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Ford Motor Company 2 Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies related to the import of books impact the total company at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out helpful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Ford Motor Company 2 Case Study Analysis. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Ford Motor Company 2 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal policies 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 approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Ford Motor Company 2 Case Study Solution include the suppliers of the paper for publishing 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.
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 market saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Ford Motor Company 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in numerous market sections, with a major concentrate on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Ford Motor Company 2 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established 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 prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining market development. The business might likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should first gathers the data related to the consumer demand, the potential markets, the government policies and the information related to the competitors provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.