Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution and Analysis
Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the new publishing firms in the market.
• 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 several concerns 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 business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Analysis has specific strengths that can be used to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position allows the company to think about numerous development opportunities with no fear of raising fund externally.
Together with the strengths, the company has certain weak points which could increase restrictions for the business in implementing its development program. The weak points of Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
The growth of the publishing market is declining because 2008, impacting Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help as well, however the development could be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competitors in the publishing market has actually presented certain hazards to Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market in addition to presence of high competition increases the risk of losing the customer base.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total incomes of Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a big number of consumers at a potential price.
Along with it, the 2nd chart which shows the annual development in the Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution total properties, shows that the company is rather effective in adding value to its properties through its incomes. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis regarding the distribution of overall incomes of the business. Huge part of the revenues 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 service sections with a potential growth to achieve its future advancement objective.
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the overall political forces affecting Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
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 in the world with a high population growth, showing the increasing variety of consumers of the Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Help. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution includes the concerns of environmental communities 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 used while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market 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 Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Maintaining The Single Samsung Spirit New Challenges In A Changing Environment Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• 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 company to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business require an instant solution to prevent the declining market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information connected to the customer demand, the possible markets, the government policies and the information related to the rivals presented in the market. After that, the company ought to decide one prospective sector for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business ought to choose the preliminary offering. If the initial offering shows a success, the company must opt for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing industry is declining because 2008, revealing a risk to the business's long term presence, but the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.