Orascom Telecom Risks Of Internationalization Case Study Solution and Analysis
Orascom Telecom Risks Of Internationalization Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Orascom Telecom Risks Of Internationalization Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 circumstance? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Orascom Telecom Risks Of Internationalization Case Study Solution has particular strengths that can be used to minimize the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Orascom Telecom Risks Of Internationalization Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the business to think about numerous development chances without any fear of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restrictions for the company in implementing its development program. The weak points of Orascom Telecom Risks Of Internationalization Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing industry is decreasing given that 2008, impacting Orascom Telecom Risks Of Internationalization Case Study Solution as well, however the growth might be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain dangers to Orascom Telecom Risks Of Internationalization Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Orascom Telecom Risks Of Internationalization Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors 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 specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the industry together with existence of high competitors increases the threat of losing the client base.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly overall earnings of Orascom Telecom Risks Of Internationalization Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in drawing in a large number of customers at a possible price.
In addition to it, the 2nd chart which shows the annual development in the Orascom Telecom Risks Of Internationalization Case Study Analysis total properties, reveals that the company is quite effective in adding worth to its assets through its revenues. The growth in assets reveals that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the circulation of total incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential growth to attain its future advancement objective.
PESTEL analysis might be carried out to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting Orascom Telecom Risks Of Internationalization Case Study Solution company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Orascom Telecom Risks Of Internationalization Case Study Help in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental forces impacting Orascom Telecom Risks Of Internationalization Case Study Analysis includes the concerns of environmental communities over the usage 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 needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Orascom Telecom Risks Of Internationalization Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Orascom Telecom Risks Of Internationalization 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. Founded in the exact same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks third and second in various market segments, with a major focus on instructional publications. CIP serves 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 might wean the market share of Orascom Telecom Risks Of Internationalization Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate option to prevent the decreasing market growth. Intro of digital publishing could show to be an immediate option with low amount of danger for the company. However, the business could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data associated with the customer need, the potential markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the company ought to choose one prospective segment for its preliminary offering. It must gather research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the company should go for the preliminary offering. The business needs to go for the other markets if the initial offering proves a success. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing market is declining given that 2008, showing a threat to the company's long term presence, but the situation can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.