Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution and Analysis
Intro
Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being 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.
Vital Issues
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution has particular strengths that can be used to decrease the threats, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to think about several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help too, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly overall revenues of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite efficient in drawing in a big number of consumers at a possible rate.
Along with it, the second graph which shows the yearly growth in the Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Analysis overall assets, reveals that the company is quite efficient in adding value to its possessions through its earnings. The growth in possessions reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the offered information could be the analysis relating to the circulation of total earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could 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 supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books impact the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on educational publications. CIP functions as a risk 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 marketplace share of Looking For Opportunity In Adversity Iqbal Quadir And Grameenphone B Case Study Help quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the 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 business need an immediate service to prevent the decreasing market development. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should initially gathers the data related to the customer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a risk to the company's long term existence, but the circumstance can be controlled by thinking about a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
