Leadership Is An Art Case Study Solution and Analysis
Introduction
Leadership Is An Art Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and Leadership Is An Art Case Study Help in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised a number of questions 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 made use of 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
Leadership Is An Art Case Study Help has certain strengths that can be made use of to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Leadership Is An Art Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong monetary position enables the company to think about several advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Leadership Is An Art Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Leadership Is An Art Case Study Solution as well, but the growth might be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually presented particular threats to Leadership Is An Art Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Leadership Is An Art Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals 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 products, etc.
• Entryway of brand-new publishing firms in the market along with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be determined. The overall financial performance of the company could be analyzed by utilizing the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Leadership Is An Art Case Study Solution is growing and the company is quite efficient in drawing in a large number of consumers at a prospective cost.
Along with it, the second graph which shows the annual growth in the Leadership Is An Art Case Study Help total assets, shows that the company is quite efficient in including worth to its assets through its earnings. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the circulation of total earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading useful products and so on. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Leadership Is An Art Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Leadership Is An Art Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used 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 Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Leadership Is An Art Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Leadership Is An Art Case Study Solution include;.
• 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 could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering 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 possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information related to the customer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
