Good Leaders Ask Good Questions Case Study Solution and Analysis
Good Leaders Ask Good Questions Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Good Leaders Ask Good Questions Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Good Leaders Ask Good Questions Case Study Solution has certain strengths that can be used to lower the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Good Leaders Ask Good Questions Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to think about numerous advancement opportunities with no fear of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restraints for the business in executing its advancement program. The weak points of Good Leaders Ask Good Questions Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining given that 2008, affecting Good Leaders Ask Good Questions Case Study Analysis as well, but the development could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed particular risks to Good Leaders Ask Good Questions Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Good Leaders Ask Good Questions Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the industry together with presence of high competitors increases the danger of losing the customer base.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total incomes of Good Leaders Ask Good Questions Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in bring in a large number of consumers at a prospective rate.
In addition to it, the second chart which shows the annual growth in the Good Leaders Ask Good Questions Case Study Help total properties, reveals that the company is quite effective in including value to its assets through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis relating to the circulation of total revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a potential growth to accomplish its future advancement goal.
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Good Leaders Ask Good Questions Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total company at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Good Leaders Ask Good Questions Case Study Solution includes the concerns of ecological 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 used while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers 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 likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Good Leaders Ask Good Questions Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Good Leaders Ask Good Questions Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in different market segments, with a significant focus on educational publications. CIP serves 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 marketplace share of Good Leaders Ask Good Questions Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Good Leaders Ask Good Questions Case Study Help and CIP. It is likewise one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the company require an immediate option to prevent the decreasing market development. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first collects the information related to the consumer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, but the situation can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.