Intercultural Communication Competency In Business Case Study Solution and Analysis
Intercultural Communication Competency In Business Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing info and interaction services. Major business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. Intercultural Communication Competency In Business Case Study Analysis has become a specialized information company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Intercultural Communication Competency In Business Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement 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 valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Intercultural Communication Competency In Business Case Study Solution has certain strengths that can be made use of to reduce the threats, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Intercultural Communication Competency In Business Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position allows the business to think about numerous development opportunities without any worry of raising fund externally.
In addition to the strengths, the company has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of Intercultural Communication Competency In Business Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term development.
The growth of the publishing market is declining because 2008, affecting Intercultural Communication Competency In Business Case Study Help as well, but the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing market has presented particular dangers to Intercultural Communication Competency In Business Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Intercultural Communication Competency In Business Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the danger of losing the consumer base.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The general financial efficiency of the company might be analyzed by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Intercultural Communication Competency In Business Case Study Solution is growing and the business is rather effective in bring in a a great deal of customers at a potential price.
In addition to it, the 2nd graph which reveals the yearly growth in the Intercultural Communication Competency In Business Case Study Solution overall possessions, shows that the company is quite effective in adding worth to its possessions through its earnings. The development in properties reveals that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of total incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential development to achieve its future development objective.
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Intercultural Communication Competency In Business Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative materials and so on. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Intercultural Communication Competency In Business Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting Intercultural Communication Competency In Business Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Intercultural Communication Competency In Business Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 costs.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Intercultural Communication Competency In Business Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 situation.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Intercultural Communication Competency In Business Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining industry growth. For that reason, introduction of digital publishing might show to be an immediate solution with low quantity of danger for the company. However, the company could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business ought to first collects the data associated with the consumer demand, the potential markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company must choose one potential section for its preliminary offering. It should gather research study that how it might differentiate its digital publishing from the existing competitors' items. The actions above the business need to go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
The development of the publishing market is decreasing because 2008, showing a danger to the company's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.