Qualcomm Incorporated 2011 Update Case Study Solution and Analysis
Introduction
Qualcomm Incorporated 2011 Update Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and Qualcomm Incorporated 2011 Update Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 valuable experience, technical resources and the abilities of the business could be used 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 2011 Update Case Study Solution has certain strengths that can be made use of to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Qualcomm Incorporated 2011 Update Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its customers.
• Strong monetary position enables the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restrictions for the company in executing its development program. The weak points of Qualcomm Incorporated 2011 Update Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Qualcomm Incorporated 2011 Update Case Study Analysis also, however the growth could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer 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 funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific threats to Qualcomm Incorporated 2011 Update Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Qualcomm Incorporated 2011 Update Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly total earnings of Qualcomm Incorporated 2011 Update Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in bring in a big number of customers at a possible price.
Along with it, the 2nd graph which shows the yearly growth in the Qualcomm Incorporated 2011 Update Case Study Analysis overall possessions, reveals that the business is quite efficient in including value to its properties through its revenues. The growth in possessions shows that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis relating to the circulation of overall profits of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Qualcomm Incorporated 2011 Update Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Qualcomm Incorporated 2011 Update 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 needed to be non reusable and the ink utilized while publishing should 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 Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. However, the presence of extreme competitors 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 substitute products for the published files is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Qualcomm Incorporated 2011 Update Case Study Solution consist of the suppliers of the paper for releasing documents. 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 existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Qualcomm Incorporated 2011 Update Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major focus on educational publications. CIP functions as a hazard 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 Qualcomm Incorporated 2011 Update Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Qualcomm Incorporated 2011 Update Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the declining market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to first gathers the data connected to the consumer need, the potential markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the company needs to choose one potential sector for its initial offering. It must gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business should opt for the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a threat to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
