Global Knowledge Management At Danone B Case Study Solution and Analysis
Introduction
Global Knowledge Management At Danone B Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Global Knowledge Management At Danone B Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long valuable experience, technical resources and the capabilities 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
Global Knowledge Management At Danone B Case Study Help has specific strengths that can be used to lower the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Global Knowledge Management At Danone B Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position permits the business to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restraints for the business in executing its advancement program. The weak points of Global Knowledge Management At Danone B Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining since 2008, affecting Global Knowledge Management At Danone B Case Study Analysis as well, but the growth might be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to Global Knowledge Management At Danone B Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Global Knowledge Management At Danone B Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall revenues of Global Knowledge Management At Danone B Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in drawing in a big number of consumers at a prospective price.
Along with it, the 2nd chart which shows the yearly development in the Global Knowledge Management At Danone B Case Study Analysis total assets, shows that the company is quite effective in adding value to its possessions through its incomes. The development in possessions reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Global Knowledge Management At Danone 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 required to be non reusable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Knowledge Management At Danone B Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market 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. Significant rivals of Global Knowledge Management At Danone B Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in various market sectors, with a major focus on academic publications. CIP serves as a risk 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 market share of Global Knowledge Management At Danone B Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise one of the popular players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry development. Therefore, introduction of digital publishing could prove to be an immediate option with low quantity of risk for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first gathers the information related to the consumer need, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a danger to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
