Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution and Analysis
Introduction
Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Analysis in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution has specific strengths that can be used to minimize the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Help also, however the growth might be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific hazards to Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution due to the consumer 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 gain a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the annual overall revenues of Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is quite effective in bring in a large number of consumers at a potential price.
Together with it, the 2nd graph which reveals the yearly development in the Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Help overall properties, shows that the business is quite efficient in including value to its possessions through its earnings. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data could be the analysis regarding the circulation of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out informative materials and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Help. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used 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 guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Intel Strategic Decisions In Locating A New Assembly And Test Plant B Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate service to avoid the decreasing industry development. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first collects the data related to the customer demand, the prospective markets, the government policies and the information connected to the rivals provided in the market. After that, the business ought to decide one prospective segment for its preliminary offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' products. The steps above the company should go for the preliminary offering. If the initial offering shows a success, the company needs to choose the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a hazard to the business's long term presence, but the situation can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
