Formosa Plastics Group Business Continuity Forever Case Study Solution and Analysis
Introduction
Formosa Plastics Group Business Continuity Forever Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing details and interaction services. Major service segments of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports etc. Formosa Plastics Group Business Continuity Forever Case Study Help has ended up being a specialized details company and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Formosa Plastics Group Business Continuity Forever Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Formosa Plastics Group Business Continuity Forever Case Study Analysis has specific strengths that can be utilized to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Formosa Plastics Group Business Continuity Forever Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position enables the company to think about a number of development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in implementing its development program. The weak points of Formosa Plastics Group Business Continuity Forever Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Formosa Plastics Group Business Continuity Forever Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually positioned specific threats to Formosa Plastics Group Business Continuity Forever Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Formosa Plastics Group Business Continuity Forever Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall incomes of Formosa Plastics Group Business Continuity Forever Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather efficient in attracting a large number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the yearly growth in the Formosa Plastics Group Business Continuity Forever Case Study Analysis overall possessions, shows that the business is rather efficient in including worth to its assets through its profits. The development in possessions shows that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the circulation of overall revenues of the business. Major part of the incomes 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 organisation sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Formosa Plastics Group Business Continuity Forever Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the total company at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Formosa Plastics Group Business Continuity Forever Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Formosa Plastics Group Business Continuity Forever Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Formosa Plastics Group Business Continuity Forever 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 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 CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant solution to avoid the declining industry growth. Therefore, introduction of digital publishing could show to be an immediate option with low quantity of danger for the business. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
