Linear Technologies Case Study Solution and Analysis
Intro
Linear Technologies Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Linear Technologies Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
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 valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Linear Technologies Case Study Analysis has particular strengths that can be utilized to decrease the threats, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Linear Technologies Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position enables the company to consider several development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which might increase restraints for the business in implementing its development program. The weak points of Linear Technologies Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining since 2008, affecting Linear Technologies Case Study Help as well, but the growth could be restored by availing certain 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 recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain hazards to Linear Technologies Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Linear Technologies Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market together with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual overall earnings of Linear Technologies Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is rather effective in drawing in a big number of clients at a prospective price.
Together with it, the second graph which reveals the annual growth in the Linear Technologies Case Study Help total assets, shows that the company is rather efficient in including worth to its properties through its revenues. The growth in assets reveals that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the circulation of total revenues of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces affecting Linear Technologies Case Study Analysis service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Linear Technologies Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading useful products and so on. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Linear Technologies Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Linear Technologies Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Linear Technologies Case Study Analysis consist of the providers of the paper for publishing documents. 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 Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Linear Technologies Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Linear Technologies Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an instant service to avoid the decreasing market development. Therefore, intro of digital publishing might show to be an instant solution with low amount of danger for the company. However, the business could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the consumer need, the possible markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
