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Ford Motor Company Strengthening The Dealer Network Case Solution

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Ford Motor Company Strengthening The Dealer Network Case Study Solution and Analysis


Introduction

Ford Motor Company Strengthening The Dealer Network Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Vital Problems

Although, Ford Motor Company Strengthening The Dealer Network Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors include;

• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
Executive Summary
The transformation of the macro markets have raised a number of 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 advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Ford Motor Company Strengthening The Dealer Network Case Study Analysis has specific strengths that can be made use of to lower 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 Strengthening The Dealer Network Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position enables the business to consider numerous development opportunities with no worry of raising fund externally.

Weak points

Along with the strengths, the company has particular weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Ford Motor Company Strengthening The Dealer Network Case Study Help are offered as follows;

• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is decreasing since 2008, impacting Ford Motor Company Strengthening The Dealer Network Case Study Help also, however the development could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;

• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.

Threats

The altering macro patterns in the market and increasing competitors in the publishing market has postured specific risks to Ford Motor Company Strengthening The Dealer Network Case Study Solution consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Ford Motor Company Strengthening The Dealer Network Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall incomes of Ford Motor Company Strengthening The Dealer Network Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is quite efficient in attracting a big number of customers at a potential cost.

In addition to it, the 2nd graph which shows the yearly development in the Ford Motor Company Strengthening The Dealer Network Case Study Analysis overall properties, reveals that the company is quite effective in including worth to its possessions through its incomes. The development in possessions shows that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).

Another monetary analysis of the business utilizing the given data could be the analysis concerning the distribution of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a possible development to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Ford Motor Company Strengthening The Dealer Network Case Study Help company are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.

Social and Demographical.

The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.

Technological.

Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might lower the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Ford Motor Company Strengthening The Dealer Network Case Study Help includes the issues of environmental neighborhoods over the usage 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 ought to not be damaging for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.

Market Analysis (Porter's Five Forces Model).

Porter's Five Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.

Danger of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.

Hazard of Replacement.

Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers 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 biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.

Rivals Analysis.

CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Ford Motor Company Strengthening The Dealer Network Case Study Solution consist of;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a major focus on educational publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Ford Motor Company Strengthening The Dealer Network Case Study Analysis easily in the existing market circumstance.

Posts and telecommunication Press (PTP).

It was also established in the exact same period as Ford Motor Company Strengthening The Dealer Network Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.

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 demand of its items in the market.

Recommendations

As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry development. The business could also consider the expansion program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its product portfolio, the business should first collects the data related to the customer need, the possible markets, the federal government policies and the information connected to the rivals provided in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company need to go for the initial offering. The business should go for the other markets if the initial offering shows a success. In this method the company would be able to implement its digital publishing program.

Conclusion

Although, the growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term presence, however the situation can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.

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