Is Your Company As Customer Focused As You Think Case Study Solution and Analysis
Introduction
Is Your Company As Customer Focused As You Think Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Is Your Company As Customer Focused As You Think Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• 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 several 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 capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Is Your Company As Customer Focused As You Think Case Study Solution has particular strengths that can be utilized to reduce the hazards, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Is Your Company As Customer Focused As You Think Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong monetary position permits the business to think about several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Is Your Company As Customer Focused As You Think Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting Is Your Company As Customer Focused As You Think Case Study Help as well, however the growth could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain risks to Is Your Company As Customer Focused As You Think Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Is Your Company As Customer Focused As You Think Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total incomes of Is Your Company As Customer Focused As You Think Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a big number of customers at a possible cost.
Along with it, the 2nd chart which shows the annual growth in the Is Your Company As Customer Focused As You Think Case Study Analysis total assets, reveals that the business is rather effective in including worth to its possessions through its earnings. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the distribution of overall profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is offered 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 federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Is Your Company As Customer Focused As You Think Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful materials etc. China has the highest population on the planet with a high population growth, showing the increasing number of consumers of the Is Your Company As Customer Focused As You Think Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Is Your Company As Customer Focused As You Think Case Study Help consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought 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 authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the virtual libraries on particular 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 existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Is Your Company As Customer Focused As You Think Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier 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.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Is Your Company As Customer Focused As You Think Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Is Your Company As Customer Focused As You Think Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect 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 existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products 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 rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. Intro of digital publishing might show to be an instant service with low quantity of risk for the company. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially collects the data connected to the consumer demand, the prospective markets, the federal government policies and the information connected to the competitors presented in the market. After that, the company ought to decide one possible sector for its initial offering. It must gather research study that how it might separate its digital publishing from the existing competitors' items. The actions above the company must go for the initial offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a danger to the company's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
