Leadership Case Study Solution and Analysis
Introduction
Leadership Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Leadership Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Leadership Case Study Analysis has certain strengths that can be used to decrease the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Leadership Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position allows the business to consider several advancement chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restrictions for the business in executing its development program. The weaknesses of Leadership Case Study Solution 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 extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining since 2008, impacting Leadership Case Study Help as well, however the development could be restored by availing certain chances presented 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 consumer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually posed specific hazards to Leadership Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Leadership Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals 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 using particular methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total revenues of Leadership Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in bring in a big number of customers at a possible price.
Together with it, the 2nd graph which shows the annual growth in the Leadership Case Study Help total properties, shows that the company is rather efficient in adding value to its assets through its revenues. The development in assets reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the distribution of total profits of the business. Major 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 company might move towards other organisation sectors with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind 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 Party of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Leadership Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Leadership Case Study Analysis include the suppliers of the paper for releasing files. 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.
Negotiating power of buyer 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 requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Leadership 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 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Leadership Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus 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 products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the consumer need, the prospective markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a danger to the business's long term presence, however the situation can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
