Globant Case Study Solution and Analysis
Globant Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Globant Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular challenges to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised several concerns 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 utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Globant Case Study Help has particular strengths that can be utilized to decrease the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Globant Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the company to consider numerous advancement chances without any worry of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase restrictions for the company in executing its development program. The weak points of Globant Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing market is declining considering that 2008, impacting Globant Case Study Solution also, but the development could be restored by availing certain chances provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has presented certain risks to Globant Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Globant Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with presence of high competition increases the risk of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be calculated. The overall monetary performance of the business might be evaluated by using the charts offered in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Globant Case Study Help is growing and the business is quite efficient in attracting a large number of consumers at a potential cost.
Together with it, the second graph which reveals the annual development in the Globant Case Study Help total assets, shows that the business is rather efficient in including value to its properties through its profits. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the circulation of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a potential development to achieve its future advancement objective.
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Globant Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Globant Case Study Solution includes the concerns of ecological communities over the use 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 must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the files presented in the virtual libraries on certain websites. The changing consumer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive competition in the publishing industry 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, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Globant Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Globant Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a significant concentrate on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Globant Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Globant Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate service to avoid the declining industry growth. Therefore, intro of digital publishing might show to be an immediate solution with low quantity of risk for the business. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information associated with the customer demand, the prospective markets, the federal government policies and the information connected to the competitors provided in the market. After that, the business must choose one prospective section for its preliminary offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the business should go for the initial offering. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would have the ability to implement its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.