Global Strategy Requires A Meeting Of Minds Case Study Solution and Analysis
Intro
Global Strategy Requires A Meeting Of Minds Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing details and interaction services. Major business segments of the company consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports etc. Global Strategy Requires A Meeting Of Minds Case Study Solution has actually become a specialized information supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and Global Strategy Requires A Meeting Of Minds Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the capabilities of the business 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 Strategy Requires A Meeting Of Minds Case Study Solution has specific strengths that can be used to lower the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are offered 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 permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the business to think about several advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Global Strategy Requires A Meeting Of Minds Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Global Strategy Requires A Meeting Of Minds Case Study Analysis also, however the growth could be revived by availing specific chances provided in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured particular threats to Global Strategy Requires A Meeting Of Minds Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Global Strategy Requires A Meeting Of Minds Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the general monetary efficiency of the business might be examined by using the charts given up the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Global Strategy Requires A Meeting Of Minds Case Study Help is growing and the company is quite effective in drawing in a large number of customers at a possible price.
Along with it, the 2nd graph which reveals the yearly development in the Global Strategy Requires A Meeting Of Minds Case Study Solution total assets, shows that the business is quite efficient in adding worth to its assets through its profits. The development in properties shows that the overall worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Global Strategy Requires A Meeting Of Minds Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall 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 general organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Global Strategy Requires A Meeting Of Minds Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required 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. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Strategy Requires A Meeting Of Minds Case Study Analysis include the suppliers of the paper for releasing files. 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 buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Global Strategy Requires A Meeting Of Minds Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Global Strategy Requires A Meeting Of Minds Case Study Analysis and CIP. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant service to avoid the declining industry development. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to first gathers the information connected to the consumer need, the potential markets, the federal government regulations and the information associated with the rivals provided in the market. After that, the business must decide one prospective sector for its initial offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business must go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a danger to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
