Novo Nordisk Commitment To Sustainability Case Study Solution and Analysis
Novo Nordisk Commitment To Sustainability Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Novo Nordisk Commitment To Sustainability Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Novo Nordisk Commitment To Sustainability Case Study Help has certain strengths that can be used to reduce the threats, get rid of the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Novo Nordisk Commitment To Sustainability Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position allows the business to think about numerous development opportunities without any fear of raising fund externally.
Along with the strengths, the company has specific weak points which might increase constraints for the company in implementing its advancement program. The weak points of Novo Nordisk Commitment To Sustainability Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing market is declining since 2008, affecting Novo Nordisk Commitment To Sustainability Case Study Solution as well, but the development might be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Novo Nordisk Commitment To Sustainability Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Novo Nordisk Commitment To Sustainability Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the consumer base.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Novo Nordisk Commitment To Sustainability Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite efficient in drawing in a big number of customers at a potential rate.
Along with it, the 2nd graph which shows the yearly growth in the Novo Nordisk Commitment To Sustainability Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its possessions through its profits. The growth in possessions shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a potential growth to achieve its future development objective.
PESTEL analysis might be conducted to find out 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 company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It could be stated that the general political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Novo Nordisk Commitment To Sustainability Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Novo Nordisk Commitment To Sustainability Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the threat of substitution for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Novo Nordisk Commitment To Sustainability Case Study Solution include the providers of the paper for releasing files. 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 Buyer.
Negotiating 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 marketplace saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Novo Nordisk Commitment To Sustainability Case Study Solution include;.
• 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 scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Novo Nordisk Commitment To Sustainability Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the business require an immediate solution to prevent the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the customer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial 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.
The development of the publishing market is decreasing given that 2008, revealing a hazard to the company's long term existence, however the scenario can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.