Leadership Under Pressure Communication Is Key Case Study Solution and Analysis
Leadership Under Pressure Communication Is Key Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing details and communication services. Significant organisation sectors of the company include; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports and so on. Leadership Under Pressure Communication Is Key Case Study Solution has become a specialized details company and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and Leadership Under Pressure Communication Is Key Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Leadership Under Pressure Communication Is Key Case Study Help has specific strengths that can be utilized to decrease the hazards, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Leadership Under Pressure Communication Is Key Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances without any fear of raising fund externally.
In addition to the strengths, the company has certain weaknesses which could increase restraints for the company in executing its development program. The weak points of Leadership Under Pressure Communication Is Key Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing market is decreasing considering that 2008, affecting Leadership Under Pressure Communication Is Key Case Study Solution as well, but the growth could be revived by availing certain opportunities presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing 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 utilizing its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has positioned specific hazards to Leadership Under Pressure Communication Is Key Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Leadership Under Pressure Communication Is Key Case Study Solution due to the consumer shift towards digital 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 rivals can get a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total revenues of Leadership Under Pressure Communication Is Key Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is rather effective in bring in a large number of clients at a possible cost.
Together with it, the 2nd graph which shows the annual growth in the Leadership Under Pressure Communication Is Key Case Study Help total assets, reveals that the company is rather effective in including value to its assets through its profits. The growth in properties shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis regarding the distribution of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a possible growth to achieve its future development goal.
PESTEL analysis could be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Leadership Under Pressure Communication Is Key Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Leadership Under Pressure Communication Is Key Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the overall business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative materials and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of customers of the Leadership Under Pressure Communication Is Key Case Study Help. The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Leadership Under Pressure Communication Is Key Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Leadership Under Pressure Communication Is Key Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Leadership Under Pressure Communication Is Key Case Study Solution include;.
• 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 could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the declining industry development. Therefore, introduction of digital publishing could show to be an instant option with low amount of risk for the company. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to first collects the data related to the consumer demand, the prospective markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company should 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 industry is declining considering that 2008, revealing a risk to the company's long term existence, but the scenario can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.