Orientation To Leadership Intelligence Days 2011 Module Note Case Study Solution and Analysis
Introduction
Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 situation? Do the long valuable experience, technical resources and the abilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Orientation To Leadership Intelligence Days 2011 Module Note Case Study Help has specific strengths that can be used to lower the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Orientation To Leadership Intelligence Days 2011 Module Note Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong monetary position allows the business to think about several development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Orientation To Leadership Intelligence Days 2011 Module Note Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, affecting Orientation To Leadership Intelligence Days 2011 Module Note Case Study Solution also, but the development might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific dangers to Orientation To Leadership Intelligence Days 2011 Module Note Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Orientation To Leadership Intelligence Days 2011 Module Note Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall incomes of Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a prospective rate.
Along with it, the second graph which reveals the yearly development in the Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis total properties, reveals that the business is quite efficient in adding value to its assets through its incomes. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the distribution of total revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The 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 CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
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 altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Orientation To Leadership Intelligence Days 2011 Module Note Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company 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 market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the declining industry growth. Intro of digital publishing could prove to be an instant solution with low quantity of danger for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially gathers the information associated with the customer need, the potential markets, the federal government regulations and the information related to the rivals provided in the market. After that, the company ought to choose one possible sector for its preliminary offering. It should collect research study that how it might differentiate its digital publishing from the existing rivals' items. The steps above the business should go for the initial offering. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the company's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
