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Foxconn Technology Group B Case Study Solution and Analysis


Introduction

Foxconn Technology Group B Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Critical Issues

CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Foxconn Technology Group B Case Study Analysis in particular. These elements consist of;

• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
Executive Summary
The improvement of the macro markets have raised numerous 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 business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Foxconn Technology Group B Case Study Analysis has certain strengths that can be made use of to minimize the risks, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;

• The long term experience of Foxconn Technology Group B Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong monetary position permits the company to consider numerous development chances with no fear of raising fund externally.

Weak points

Together with the strengths, the business has specific weak points which might increase constraints for the business in executing its advancement program. The weaknesses of Foxconn Technology Group B Case Study Help are offered as follows;

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

Although, the growth of the publishing market is decreasing given that 2008, impacting Foxconn Technology Group B Case Study Solution also, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;

• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.

Threats

The altering macro patterns in the market and increasing competition in the publishing industry has presented specific hazards to Foxconn Technology Group B Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Foxconn Technology Group B Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market together with presence of high competition increases the threat of losing the consumer base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total revenues of Foxconn Technology Group B Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in bring in a large number of clients at a possible price.

Together with it, the 2nd graph which reveals the annual development in the Foxconn Technology Group B Case Study Help total possessions, shows that the business is rather effective in including value to its possessions through its revenues. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).

Another monetary analysis of the company utilizing the offered data could be the analysis concerning the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible growth to achieve its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to discover the different external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces impacting Foxconn Technology Group B Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in general and the Foxconn Technology Group B Case Study Analysis in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the general service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development 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 must focus on digital publishing to fulfill the altering consumer preferences.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Foxconn Technology Group B Case Study Help includes the concerns of ecological 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 utilized while publishing ought to not be harmful for the environment.

Legal.

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

Industry Analysis (Porter's Five Forces Model).

Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.

Threat of New Entrants.

Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.

Danger of Alternative.

Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the threat of alternative for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Foxconn Technology Group B Case Study Analysis consist of the suppliers of the paper for publishing files. 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.

Haggling power of buyer 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 purchasers requires high quality files at competitive prices.

Competitors Analysis.

CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Foxconn Technology Group B Case Study Solution include;.

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

Chemical Industry Press (CIP).

CIP acts as a danger 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 present market circumstance.

Posts and telecommunication Press (PTP).

It was also established in the very same duration as Foxconn Technology Group B Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

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

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.

Suggestions

As the preferences are moving towards digital publishing and the business require an immediate service to prevent the declining market growth. The business could likewise think about the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its item portfolio, the company needs to first gathers the information related to the customer need, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing market is declining given that 2008, showing a danger to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.

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