Ford Motor Company Case Study Solution and Analysis
Ford Motor Company Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Ford Motor Company Case Study Analysis in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Ford Motor Company Case Study Analysis has particular strengths that can be utilized to minimize the threats, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Ford Motor Company Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the business to think about numerous advancement chances without any fear of raising fund externally.
Together with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its development program. The weak points of Ford Motor Company Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business 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 should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing considering that 2008, impacting Ford Motor Company Case Study Solution also, however the development could be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular threats to Ford Motor Company Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Ford Motor Company Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the danger of losing the consumer base.
Due to absence of data, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual overall earnings of Ford Motor Company Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a big number of clients at a prospective price.
Together with it, the second graph which reveals the annual development in the Ford Motor Company Case Study Solution overall properties, shows that the company is quite effective in adding value to its assets through its earnings. The development in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of overall profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL analysis might be performed to learn the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces affecting Ford Motor Company Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Ford Motor Company Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Ford Motor Company Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the existence of large number of competitors. However, 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 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant focus on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Ford Motor Company Case Study Help quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat 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 capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to prevent the declining market growth. Therefore, introduction of digital publishing might show to be an instant option with low amount of threat for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first gathers the information related to the customer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could consider 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.