Qualcomm Incorporated 2009 Case Study Solution and Analysis
Introduction
Qualcomm Incorporated 2009 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Qualcomm Incorporated 2009 Case Study Solution in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Qualcomm Incorporated 2009 Case Study Help has specific strengths that can be made use of to minimize the hazards, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Qualcomm Incorporated 2009 Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position permits the business to consider several advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Qualcomm Incorporated 2009 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Qualcomm Incorporated 2009 Case Study Solution as well, however the growth might be revived by availing specific chances presented in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific risks to Qualcomm Incorporated 2009 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Qualcomm Incorporated 2009 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market along with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The overall monetary performance of the company might be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Qualcomm Incorporated 2009 Case Study Analysis is growing and the company is rather effective in attracting a a great deal of consumers at a potential rate.
Along with it, the second graph which shows the yearly development in the Qualcomm Incorporated 2009 Case Study Solution total properties, shows that the company is rather effective in including worth to its assets through its revenues. The development in assets reveals that the overall worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis concerning the distribution of overall earnings of the business. Major part of the profits 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 service segments with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting Qualcomm Incorporated 2009 Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Qualcomm Incorporated 2009 Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the general service at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading helpful materials and so on. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Qualcomm Incorporated 2009 Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing could lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Qualcomm Incorporated 2009 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Qualcomm Incorporated 2009 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Qualcomm Incorporated 2009 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sectors, with a significant focus on instructional publications. CIP acts as a danger 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 marketplace share of Qualcomm Incorporated 2009 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the 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 players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the declining market development. For that reason, intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. The company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially collects the data related to the customer demand, the potential markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the business's long term presence, however the scenario can be controlled by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
