Leadership And Management Concepts Case Study Solution and Analysis
Leadership And Management Concepts Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Leadership And Management Concepts Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Leadership And Management Concepts Case Study Solution has specific strengths that can be utilized to minimize the dangers, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Leadership And Management Concepts Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products 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 risk and provide high value to its consumers.
• Strong monetary position enables the business to consider several advancement chances with no worry of raising fund externally.
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Leadership And Management Concepts Case Study Solution are offered 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 extremely relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing industry is decreasing given that 2008, impacting Leadership And Management Concepts Case Study Solution as well, however the development might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has presented specific threats to Leadership And Management Concepts Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Leadership And Management Concepts Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the danger of losing the client base.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. The general financial efficiency of the business could be analyzed by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Leadership And Management Concepts Case Study Analysis is growing and the company is rather effective in attracting a a great deal of clients at a possible rate.
Together with it, the 2nd chart which shows the yearly development in the Leadership And Management Concepts Case Study Analysis overall assets, reveals that the company is rather effective in adding worth to its properties through its incomes. The development in assets reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the distribution of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential growth to accomplish its future advancement objective.
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Leadership And Management Concepts Case Study Analysis service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Leadership And Management Concepts Case Study Help in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the financial policies connected to the import of books impact the general business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful materials and so on. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Leadership And Management Concepts Case Study Help. However, the consumer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Leadership And Management Concepts Case Study Analysis includes the concerns of environmental neighborhoods 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 must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Leadership And Management Concepts Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Leadership And Management Concepts Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 likewise established in the same period as Leadership And Management Concepts Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company need an instant service to prevent the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the customer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing given that 2008, showing a danger to the company's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.