Infineon Technologies Time To Cash In Your Chips 3 Case Study Solution and Analysis
Introduction
Infineon Technologies Time To Cash In Your Chips 3 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing details and communication services. Significant business sections of the business include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items include books, periodicals, online media, exhibits, research reports and so on. Infineon Technologies Time To Cash In Your Chips 3 Case Study Solution has become a specialized information supplier and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 important experience, technical resources and the capabilities of the business could be utilized 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
Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis has particular strengths that can be made use of to lower the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position allows the business to think about a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weak points of Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has presented specific threats to Infineon Technologies Time To Cash In Your Chips 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be calculated. The total monetary performance of the business could be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis is growing and the company is rather effective in attracting a a great deal of clients at a potential rate.
Along with it, the second chart which reveals the yearly growth in the Infineon Technologies Time To Cash In Your Chips 3 Case Study Help total possessions, reveals that the business is rather efficient in adding worth to its assets through its incomes. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of overall incomes of the company. Huge 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 business might move towards other business sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Infineon Technologies Time To Cash In Your Chips 3 Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Infineon Technologies Time To Cash In Your Chips 3 Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Infineon Technologies Time To Cash In Your Chips 3 Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Infineon Technologies Time To Cash In Your Chips 3 Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Infineon Technologies Time To Cash In Your Chips 3 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 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Infineon Technologies Time To Cash In Your Chips 3 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant solution to avoid the declining industry growth. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the consumer demand, the prospective markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, showing a threat to the business's long term presence, however the situation can be controlled by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
