France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution and Analysis
Introduction
France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing market in general and France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions 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 used 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
France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help has specific strengths that can be utilized to decrease the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position allows the company to think about a number of development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weaknesses of France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help too, but the growth might be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented particular dangers to France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the overall monetary performance of the business might be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution is growing and the company is quite effective in attracting a large number of customers at a potential price.
In addition to it, the 2nd chart which reveals the yearly growth in the France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Analysis total properties, shows that the company is rather effective in adding value to its properties through its incomes. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis concerning the circulation of total earnings of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces affecting France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total service at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Analysis. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Solution consist of the providers of the paper for publishing 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.
Bargaining 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 market saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of France Telecom Orange In 2011 Stephane Richard And Conquests 2015 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate service to avoid the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business needs to first collects the data related to the customer need, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a threat to the business's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
