Foxconn Technology Group B Case Study Solution and Analysis
Introduction
Foxconn Technology Group B Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Foxconn Technology Group B Case Study Help has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business 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
Foxconn Technology Group B Case Study Help has certain strengths that can be made use of to decrease the threats, overcome the weak point and obtain the chances. 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 enables the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the business to think about numerous advancement chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Foxconn Technology Group B Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, affecting Foxconn Technology Group B Case Study Help also, however the growth could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned particular threats to Foxconn Technology Group B Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital 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 a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall earnings of Foxconn Technology Group B Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in drawing in a big number of customers at a potential price.
Along with it, the second chart which shows the yearly development in the Foxconn Technology Group B Case Study Help total properties, reveals that the business is rather effective in adding value to its possessions through its profits. The growth in properties shows that the total worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered data could be the analysis relating to the distribution of overall earnings of the business. Huge 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 company might move towards other service segments with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Foxconn Technology Group B Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies 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 Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Foxconn Technology Group B Case Study Analysis consist of 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Foxconn Technology Group B Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major concentrate on instructional 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 marketplace share of Foxconn Technology Group B Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also among the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business need an instant service to avoid the declining market growth. Therefore, introduction of digital publishing could prove to be an instant solution with low amount of risk for the business. Nevertheless, the business might also 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 business needs to first gathers the data related to the consumer need, the prospective markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
