Low K Dielectrics At Ibm Case Study Solution and Analysis
Introduction
Low K Dielectrics At Ibm Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Major business sectors of the company include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Low K Dielectrics At Ibm Case Study Help has ended up being a specialized information supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Low K Dielectrics At Ibm Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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
Low K Dielectrics At Ibm Case Study Analysis has certain strengths that can be used to minimize the threats, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Low K Dielectrics At Ibm Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high worth to its clients.
• Strong monetary position permits the business to think about a number of advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restraints for the business in implementing its development program. The weaknesses of Low K Dielectrics At Ibm Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Low K Dielectrics At Ibm Case Study Analysis as well, however the development could be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular risks to Low K Dielectrics At Ibm Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Low K Dielectrics At Ibm Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual total revenues of Low K Dielectrics At Ibm Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is rather efficient in drawing in a big number of consumers at a prospective rate.
In addition to it, the 2nd chart which reveals the annual growth in the Low K Dielectrics At Ibm Case Study Help overall properties, shows that the company is rather effective in adding value to its assets through its incomes. The growth in properties reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the provided information might be the analysis concerning the circulation of overall profits of the business. Major part of the earnings 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 service sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Low K Dielectrics At Ibm Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the increase of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Low K Dielectrics At Ibm Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Low K Dielectrics At Ibm Case Study Help include 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 provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Low K Dielectrics At Ibm Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. 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
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry development. Intro of digital publishing could prove to be an instant solution with low amount of danger for the business. Nevertheless, the business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should initially collects the information related to the consumer demand, the prospective markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
