Ford Motor Company Strengthening The Dealer Network Case Study Solution and Analysis
Ford Motor Company Strengthening The Dealer Network Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and interaction services. Major service sectors of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. Ford Motor Company Strengthening The Dealer Network Case Study Analysis has become a specialized info provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Ford Motor Company Strengthening The Dealer Network Case Study Analysis in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Ford Motor Company Strengthening The Dealer Network Case Study Analysis has certain strengths that can be utilized to minimize the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Ford Motor Company Strengthening The Dealer Network Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position allows the company to think about a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restraints for the company in implementing its development program. The weaknesses of Ford Motor Company Strengthening The Dealer Network Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining considering that 2008, affecting Ford Motor Company Strengthening The Dealer Network Case Study Solution as well, but the growth might be restored by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has postured particular risks to Ford Motor Company Strengthening The Dealer Network Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Ford Motor Company Strengthening The Dealer Network Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP could not be determined. However, the total monetary performance of the company might be evaluated by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Ford Motor Company Strengthening The Dealer Network Case Study Help is growing and the company is quite effective in bring in a a great deal of customers at a possible price.
Along with it, the 2nd graph which shows the yearly development in the Ford Motor Company Strengthening The Dealer Network Case Study Solution overall possessions, reveals that the company is quite efficient in adding worth to its properties through its revenues. The growth in assets shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the circulation of total revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a prospective development to achieve its future development objective.
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Ford Motor Company Strengthening The Dealer Network Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Ford Motor Company Strengthening The Dealer Network Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the financial policies related to the import of books impact the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful products etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Ford Motor Company Strengthening The Dealer Network Case Study Help. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Ford Motor Company Strengthening The Dealer Network Case Study Help consists of the concerns of ecological neighborhoods over the use 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 must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market 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 Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
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 rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Ford Motor Company Strengthening The Dealer Network Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
CMP operates in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Ford Motor Company Strengthening The Dealer Network Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks second and third in various market segments, with a major concentrate on instructional publications. CIP acts 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 might wean the marketplace share of Ford Motor Company Strengthening The Dealer Network Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Ford Motor Company Strengthening The Dealer Network Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the decreasing market growth. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should first gathers the information related to the customer need, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The growth of the publishing market is declining since 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.