Intercultural Communication Competency In Business Case Study Solution and Analysis
Introduction
Intercultural Communication Competency In Business Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing information and interaction services. Significant service sections of the business consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Intercultural Communication Competency In Business Case Study Solution has ended up being a specialized details provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Intercultural Communication Competency In Business Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Intercultural Communication Competency In Business Case Study Analysis has certain strengths that can be utilized to lower the threats, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Intercultural Communication Competency In Business Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the company to consider numerous development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Intercultural Communication Competency In Business Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Intercultural Communication Competency In Business Case Study Help too, but the development might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually presented particular threats to Intercultural Communication Competency In Business Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Intercultural Communication Competency In Business Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be computed. Nevertheless, the general financial efficiency of the business could be examined by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Intercultural Communication Competency In Business Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of consumers at a prospective rate.
Together with it, the second graph which shows the yearly growth in the Intercultural Communication Competency In Business Case Study Solution overall possessions, reveals that the company is rather effective in adding value to its properties through its earnings. The development in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the distribution of total earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Intercultural Communication Competency In Business Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Intercultural Communication Competency In Business Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the general company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Intercultural Communication Competency In Business Case Study Help. Nevertheless, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and technology together with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Intercultural Communication Competency In Business 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the hazard of replacement 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, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Intercultural Communication Competency In Business Case Study Help consist of the suppliers of the paper for publishing documents. 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 Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Intercultural Communication Competency In Business Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Intercultural Communication Competency In Business Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing market growth. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must first collects the information related to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, however the scenario can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
