Global Strategy Requires A Meeting Of Minds Case Study Solution and Analysis
Global Strategy Requires A Meeting Of Minds Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info company and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and Global Strategy Requires A Meeting Of Minds Case Study Help in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Global Strategy Requires A Meeting Of Minds Case Study Help has certain strengths that can be made use of to reduce the threats, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Global Strategy Requires A Meeting Of Minds Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position enables the company to consider several development chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Global Strategy Requires A Meeting Of Minds Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is declining since 2008, affecting Global Strategy Requires A Meeting Of Minds Case Study Help as well, but the growth might be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has posed specific threats to Global Strategy Requires A Meeting Of Minds Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Global Strategy Requires A Meeting Of Minds Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with existence of high competition increases the threat of losing the consumer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be computed. The overall financial performance of the company might be analyzed by using the charts offered in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Global Strategy Requires A Meeting Of Minds Case Study Analysis is growing and the business is quite effective in bring in a large number of customers at a prospective price.
Together with it, the 2nd chart which shows the annual growth in the Global Strategy Requires A Meeting Of Minds Case Study Analysis total possessions, shows that the company is quite effective in including value to its possessions through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall revenues of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a prospective development to attain its future advancement objective.
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Global Strategy Requires A Meeting Of Minds Case Study Analysis. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation along with the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Global Strategy Requires A Meeting Of Minds Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on certain sites. The altering consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market 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 marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Global Strategy Requires A Meeting Of Minds Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Global Strategy Requires A Meeting Of Minds Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing industry development. For that reason, intro of digital publishing could show to be an instant option with low quantity of danger for the company. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must first collects the data related to the customer need, the prospective markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.