Microsoft In China And India Case Study Solution and Analysis
Introduction
Microsoft In China And India Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing info and communication services. Significant service segments of the business include; books, regulars, consultancy and distribution. The business has a large item portfolio and its major items include books, regulars, online media, exhibits, research study reports etc. Microsoft In China And India Case Study Solution has become a specialized details service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Microsoft In China And India Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Microsoft In China And India Case Study Analysis has specific strengths that can be made use of to reduce the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Microsoft In China And India Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position allows the company to consider several development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which could increase restraints for the business in implementing its advancement program. The weak points of Microsoft In China And India Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Microsoft In China And India Case Study Help as well, however the development might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment 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 vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has posed particular risks to Microsoft In China And India Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Microsoft In China And India Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry 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 promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total earnings of Microsoft In China And India Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a possible cost.
Together with it, the second chart which shows the yearly growth in the Microsoft In China And India Case Study Analysis overall assets, shows that the company is quite effective in including worth to its properties through its earnings. The growth in assets reveals that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the circulation of total revenues of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed 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).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Microsoft In China And India Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
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 rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Microsoft In China And India Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry 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 rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Microsoft In China And India Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks third and second in different market sections, with a major focus on educational publications. CIP serves 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 could wean the marketplace share of Microsoft In China And India Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Microsoft In China And India Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant service to avoid the declining market growth. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first collects the information related to the customer demand, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a hazard to the business's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
