Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution and Analysis
Introduction
Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and interaction services. Significant service segments of the company consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help has actually become a specialized info supplier and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution has particular strengths that can be used to minimize the threats, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position enables the business to think about numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Analysis also, however the development might be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• 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 expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned particular threats to Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. Nevertheless, the total monetary efficiency of the business might be analyzed by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help is growing and the business is quite efficient in drawing in a a great deal of clients at a potential price.
In addition to it, the 2nd chart which shows the annual development in the Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution total properties, shows that the business is quite efficient in adding worth to its assets through its revenues. The development in assets reveals that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the distribution of overall earnings of the company. Huge 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 business could move towards other organisation sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books impact the total service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the documents provided in the virtual libraries on particular sites. The altering customer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Multimillionaire Matchmaker An Inside Look At Ceo Succession Planning Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant service to avoid the declining market development. Intro of digital publishing might prove to be an instant service with low amount of threat for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information related to the customer need, 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 business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, revealing a risk to the company's long term existence, but the situation can be controlled by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
