Good Leaders Ask Good Questions Case Study Solution and Analysis
Intro
Good Leaders Ask Good Questions Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and interaction services. Major organisation sectors of the company include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant items consist of books, regulars, online media, exhibitions, research reports etc. Good Leaders Ask Good Questions Case Study Analysis has become a specialized info service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Good Leaders Ask Good Questions Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Good Leaders Ask Good Questions Case Study Analysis has specific strengths that can be made use of to decrease the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Good Leaders Ask Good Questions Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong monetary position permits the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase restrictions for the business in executing its development program. The weaknesses of Good Leaders Ask Good Questions Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Good Leaders Ask Good Questions Case Study Analysis too, however the growth could be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• 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 expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has actually presented particular dangers to Good Leaders Ask Good Questions Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Good Leaders Ask Good Questions Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the general monetary efficiency of the company could be examined by utilizing the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Good Leaders Ask Good Questions Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of consumers at a possible price.
Together with it, the second graph which reveals the annual development in the Good Leaders Ask Good Questions Case Study Help total assets, reveals that the company is rather efficient in adding value to its assets through its profits. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the circulation of overall earnings of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Good Leaders Ask Good Questions Case Study Help service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Good Leaders Ask Good Questions Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books affect the overall organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out helpful materials and so on. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Good Leaders Ask Good Questions Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Good Leaders Ask Good Questions Case Study Solution consists of the issues of ecological communities over the use 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Good Leaders Ask Good Questions Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Good Leaders Ask Good Questions Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous 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 Good Leaders Ask Good Questions Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant service to avoid the declining market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to first collects the data associated with the customer need, the prospective markets, the government policies and the information associated with the competitors provided in the market. After that, the business ought to decide one potential section for its initial offering. It must gather research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the company ought to go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, revealing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
