Open Text Corporation Case Study Solution and Analysis
Intro
Open Text Corporation Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting details, processing info and communication services. Significant organisation segments of the company consist of; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. Open Text Corporation Case Study Help has actually become a specialized info supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in basic and Open Text Corporation Case Study Help in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of 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
Open Text Corporation Case Study Analysis has specific strengths that can be utilized to lower the risks, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Open Text Corporation Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong financial position permits the business to think about a number of development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Open Text Corporation Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, 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 growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Open Text Corporation Case Study Solution as well, but the development could be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business might also 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 reduce its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has postured certain dangers to Open Text Corporation Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Open Text Corporation Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry together with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be determined. However, the overall monetary efficiency of the business could be evaluated by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Open Text Corporation Case Study Help is growing and the business is quite effective in bring in a large number of consumers at a potential rate.
Along with it, the second graph which shows the yearly development in the Open Text Corporation Case Study Solution overall possessions, reveals that the business is rather efficient in including worth to its properties through its earnings. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis relating to the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Open Text Corporation Case Study Analysis organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Open Text Corporation Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Open Text Corporation Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Open Text Corporation Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sections, with a significant focus on educational publications. CIP acts as a danger 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 marketplace share of Open Text Corporation Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Open Text Corporation Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk 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 segments to the new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry growth. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to initially gathers the information related to the customer demand, the possible markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a hazard to the company's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
