Leading Teams 3 Case Study Solution and Analysis
Leading Teams 3 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 provider and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Leading Teams 3 Case Study Solution in particular. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation 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 circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Leading Teams 3 Case Study Analysis has specific strengths that can be made use of to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Leading Teams 3 Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong monetary position allows the company to think about a number of development opportunities without any worry of raising fund externally.
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weak points of Leading Teams 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional 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 particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is declining since 2008, impacting Leading Teams 3 Case Study Help as well, however the growth could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
The changing macro trends in the market and increasing competition in the publishing industry has presented certain hazards to Leading Teams 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Leading Teams 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the hazard of losing the consumer base.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general monetary performance of the business might be examined by using the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Leading Teams 3 Case Study Help is growing and the business is rather efficient in bring in a large number of consumers at a prospective rate.
In addition to it, the second graph which reveals the yearly growth in the Leading Teams 3 Case Study Analysis total assets, shows that the company is quite efficient in adding worth to its possessions through its incomes. The growth in assets reveals that the total worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall incomes of the company. Major part of the earnings of CMP comes 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 possible growth to attain its future development objective.
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Leading Teams 3 Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Leading Teams 3 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the total organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Leading Teams 3 Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Leading Teams 3 Case Study Analysis consists of the issues of ecological communities 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 must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files provided in the virtual libraries on certain sites. The changing consumer choices towards digital learning increase the threat of alternative for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Leading Teams 3 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Leading Teams 3 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Leading Teams 3 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. The business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first gathers the data connected to the customer need, the prospective markets, the government policies and the information associated with the competitors presented in the market. After that, the company should choose one prospective segment for its initial offering. It ought to gather research that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company must opt for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, revealing a danger to the business's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.