Ockham Technologies A Building The Team Case Study Solution and Analysis
Introduction
Ockham Technologies A Building The Team Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Ockham Technologies A Building The Team Case Study Analysis has actually spent 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 CMP in specific. These factors include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ockham Technologies A Building The Team Case Study Analysis has specific strengths that can be utilized to decrease the dangers, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Ockham Technologies A Building The Team Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Ockham Technologies A Building The Team Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Ockham Technologies A Building The Team Case Study Solution as well, however the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific threats to Ockham Technologies A Building The Team Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Ockham Technologies A Building The Team Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific strategies like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall profits of Ockham Technologies A Building The Team Case Study Help during the duration 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 effective in attracting a big number of consumers at a prospective price.
Along with it, the 2nd chart which reveals the yearly growth in the Ockham Technologies A Building The Team Case Study Solution total possessions, reveals that the company is quite efficient in adding worth to its properties through its incomes. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided data could be the analysis regarding the distribution of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial 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. For that reason, it might be said that the total political forces impacting Ockham Technologies A Building The Team Case Study Solution company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Ockham Technologies A Building The Team Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the general business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Ockham Technologies A Building The Team Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Ockham Technologies A Building The Team Case Study Analysis consists of the issues of ecological communities 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Ockham Technologies A Building The Team Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Ockham Technologies A Building The Team Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in different market sections, with a major concentrate on instructional 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 market share of Ockham Technologies A Building The Team Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant option to avoid the decreasing industry growth. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first gathers the data connected to the customer need, the prospective markets, the federal government policies and the data connected to the competitors presented in the market. After that, the company should decide one prospective sector for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing rivals' items. The actions above the business ought to go for the initial offering. The business must go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
