Ockham Technologies B Building The Board Case Study Solution and Analysis
Introduction
Ockham Technologies B Building The Board Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in basic and Ockham Technologies B Building The Board Case Study Analysis in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 business could be made use of 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
Ockham Technologies B Building The Board Case Study Solution has particular strengths that can be used to decrease the hazards, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Ockham Technologies B Building The Board Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the business to consider a number of development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Ockham Technologies B Building The Board Case Study Analysis are provided 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 extremely relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Ockham Technologies B Building The Board Case Study Solution as well, however the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular dangers to Ockham Technologies B Building The Board Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Ockham Technologies B Building The Board Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be calculated. However, the general monetary performance of the company could be examined by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Ockham Technologies B Building The Board Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly growth in the Ockham Technologies B Building The Board Case Study Solution overall possessions, shows that the company is rather effective in including worth to its properties through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis concerning the distribution of total earnings of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the performance of the company and the recent 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 mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Ockham Technologies B Building The Board Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the total service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Ockham Technologies B Building The Board Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Ockham Technologies B Building The Board Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files provided in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Ockham Technologies B Building The Board Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Ockham Technologies B Building The Board Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market segments, with a significant focus on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Ockham Technologies B Building The Board Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Ockham Technologies B Building The Board Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing market growth. Introduction of digital publishing could show to be an instant option with low amount of danger for the company. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data related to the consumer need, the potential markets, the government guidelines and the information connected to the rivals provided in the market. After that, the company must decide one prospective section for its preliminary offering. It ought to collect research that how it might separate its digital publishing from the existing competitors' products. The steps above the business must go for the preliminary offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
