Nokia The Burning Platform Case Study Solution and Analysis
Introduction
Nokia The Burning Platform Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Nokia The Burning Platform Case Study Solution in specific. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Nokia The Burning Platform Case Study Analysis has certain strengths that can be utilized to decrease the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Nokia The Burning Platform Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position allows the company to think about several advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Nokia The Burning Platform Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Nokia The Burning Platform Case Study Help as well, but the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to Nokia The Burning Platform Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Nokia The Burning Platform Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly total revenues of Nokia The Burning Platform Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in drawing in a big number of customers at a potential cost.
In addition to it, the 2nd graph which shows the yearly development in the Nokia The Burning Platform Case Study Solution overall properties, shows that the business is quite effective in adding value to its assets through its profits. The growth in properties shows that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis concerning the circulation of total revenues of the business. Major 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 business could move towards other organisation sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Nokia The Burning Platform Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids 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 utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents presented in the virtual libraries on specific websites. The altering customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Nokia The Burning Platform Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Nokia The Burning Platform Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current 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 focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining industry growth. Introduction of digital publishing might prove to be an instant option with low amount of danger for the business. However, the company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the customer demand, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing given that 2008, showing a danger to the company's long term existence, however the scenario can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
