Ford Motor Company Case Study Solution and Analysis
Introduction
Ford Motor Company Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing details and interaction services. Significant organisation sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast item portfolio and its major products include books, regulars, online media, exhibitions, research reports etc. Ford Motor Company Case Study Analysis has actually become a specialized details provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Ford Motor Company Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ford Motor Company Case Study Analysis has certain strengths that can be used to decrease the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ford Motor Company Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong monetary position permits the business to think about several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restraints for the business in executing its development program. The weaknesses of Ford Motor Company Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Ford Motor Company Case Study Help also, however the growth might be restored by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned specific hazards to Ford Motor Company Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Ford Motor Company Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall profits of Ford Motor Company Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is quite effective in bring in a large number of customers at a potential price.
Along with it, the 2nd graph which reveals the annual growth in the Ford Motor Company Case Study Analysis overall possessions, reveals that the business is rather effective in including value to its possessions through its earnings. The development in assets shows that the overall value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the circulation of total profits of the company. Huge 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 might move towards other organisation sectors with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting Ford Motor Company Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Ford Motor Company Case Study Solution in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books affect the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products etc. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Ford Motor Company Case Study Solution. Nevertheless, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Ford Motor Company Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially 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.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry 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 competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Ford Motor Company Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Ford Motor Company Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Ford Motor Company Case Study Solution and CIP. It is also one of the prominent 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 dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate option to avoid the decreasing industry growth. The business could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer need, the potential markets, the government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a danger to the company's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
