Growing Pains At Stroz Friedberg Case Study Solution and Analysis
Introduction
Growing Pains At Stroz Friedberg 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 info service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Growing Pains At Stroz Friedberg Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change 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 valuable experience, technical resources and the abilities of the company 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
Growing Pains At Stroz Friedberg Case Study Solution has particular strengths that can be used to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Growing Pains At Stroz Friedberg Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Growing Pains At Stroz Friedberg Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting Growing Pains At Stroz Friedberg Case Study Help too, however the growth might be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually postured specific threats to Growing Pains At Stroz Friedberg Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Growing Pains At Stroz Friedberg Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall revenues of Growing Pains At Stroz Friedberg Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a large number of customers at a potential rate.
In addition to it, the 2nd graph which shows the yearly growth in the Growing Pains At Stroz Friedberg Case Study Help total possessions, shows that the business is rather efficient in including worth to its assets through its incomes. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis relating to the distribution of total incomes of the business. Huge part of the earnings 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 business sectors with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Growing Pains At Stroz Friedberg Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Growing Pains At Stroz Friedberg Case Study Solution include the providers of the paper for publishing 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 buyer in the publishing market 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 files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Growing Pains At Stroz Friedberg Case Study Help 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 publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a significant focus on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Growing Pains At Stroz Friedberg Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Growing Pains At Stroz Friedberg Case Study Help and CIP. It is likewise one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business require an instant solution to prevent the declining market development. Therefore, introduction of digital publishing might prove to be an immediate solution with low quantity of danger for the company. The company could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company should initially gathers the data related to the consumer need, the prospective markets, the federal government policies and the data connected to the competitors presented in the market. After that, the business must choose one prospective segment for its initial offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' items. The actions above the business should go for the initial offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a risk to the company's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
