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Open Text Corporation Case Analysis

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Open Text Corporation Case Study Solution and Analysis


Introduction

Open Text Corporation Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Significant business sections of the business consist of; books, regulars, consultancy and circulation. The company has a vast product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. Open Text Corporation Case Study Solution has become a specialized information service provider and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.

Critical Concerns

CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and Open Text Corporation Case Study Analysis in particular. These factors consist of;

• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
Executive Summary
The change of the macro markets have raised several 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 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 Solution has particular strengths that can be utilized to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are provided as follows;

• The long term experience of Open Text Corporation Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the company to think about several development opportunities without any worry of raising fund externally.

Weaknesses

In addition to the strengths, the business has particular weak points which could increase restrictions for the business in executing its development program. The weak points of Open Text Corporation Case Study Help are given as follows;

• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing since 2008, impacting Open Text Corporation Case Study Analysis also, however the development might be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;

• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.

Hazards

The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific risks to Open Text Corporation Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Open Text Corporation Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the client base.

Monetary Analysis.
Swot Analysis
The company has a rather competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be computed. The general monetary performance of the business could be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Open Text Corporation Case Study Analysis is growing and the company is quite effective in bring in a large number of consumers at a possible rate.

Together with it, the second graph which shows the yearly growth in the Open Text Corporation Case Study Help overall assets, reveals that the company is quite effective in including value to its possessions through its incomes. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).

Another monetary analysis of the company using the provided information might be the analysis regarding the distribution of total revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a prospective development to achieve its future development goal.

PESTEL Analysis

PESTEL analysis could be conducted to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable impact on the frame 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 Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Open Text Corporation Case Study Help company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in general and the Open Text Corporation Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the general service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.

Social and Demographical.

The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Open Text Corporation Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful 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 entered in the publishing market.

Industry Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.

Hazard of New Entrants.

Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.

Danger of Replacement.

Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the danger of replacement for the market.

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 and so on 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 significant suppliers of the Open Text Corporation Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.

Rivals Analysis.

CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Open Text Corporation Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a risk 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 easily in the existing market circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its items in the market.

Recommendations

With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining industry growth. Intro of digital publishing could show to be an instant option with low quantity of threat for the business. However, the business might likewise consider the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its product portfolio, the business needs to initially gathers the data related to the consumer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing market is decreasing given that 2008, revealing a risk to the business's long term presence, however the situation can be managed by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.

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