Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution and Analysis
Intro
Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting information, processing info and interaction services. Major business sectors of the business include; books, regulars, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Analysis has actually ended up being a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help has particular strengths that can be utilized to minimize the dangers, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase constraints for the company in implementing its development program. The weaknesses of Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Analysis as well, but the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific risks to Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be determined. The total monetary efficiency of the business might be evaluated by using the charts 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 annual need of the items of Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help is growing and the business is quite efficient in attracting a a great deal of clients at a prospective cost.
Along with it, the 2nd chart which shows the yearly development in the Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help total assets, reveals that the company is quite efficient in adding value to its assets through its earnings. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given data could be the analysis regarding the distribution of overall profits of the company. Major 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 business sections with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population growth, revealing the increasing number of consumers of the Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files presented in the virtual libraries on certain sites. The altering customer choices towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Open Innovation And The Stage Gate Process Revised Model For New Product Development Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 service sections to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. Introduction of digital publishing could prove to be an instant option with low amount of threat for the company. Nevertheless, the company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must initially collects the data related to the customer need, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, showing a hazard to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
