Renault Trucks Re Manufacturing Case Study Solution and Analysis
Introduction
Renault Trucks Re Manufacturing Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and communication services. Significant business sections of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. Renault Trucks Re Manufacturing Case Study Help has actually ended up being a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Renault Trucks Re Manufacturing Case Study Analysis in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns 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 company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Renault Trucks Re Manufacturing Case Study Help has certain strengths that can be utilized to reduce the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Renault Trucks Re Manufacturing Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Renault Trucks Re Manufacturing Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Renault Trucks Re Manufacturing Case Study Analysis as well, however the development could be restored by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has presented specific hazards to Renault Trucks Re Manufacturing Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Renault Trucks Re Manufacturing Case Study Help due to the customer shift towards virtual 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 customer base by using certain strategies like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be examined from the Appendix III that the annual overall incomes of Renault Trucks Re Manufacturing Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in drawing in a large number of clients at a possible cost.
In addition to it, the 2nd chart which reveals the yearly development in the Renault Trucks Re Manufacturing Case Study Solution overall assets, reveals that the company is quite efficient in adding value to its assets through its profits. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis relating to the distribution of total profits of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine 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 should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Renault Trucks Re Manufacturing Case Study Analysis consists of the concerns of ecological neighborhoods 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 should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on certain websites. The changing customer choices towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Renault Trucks Re Manufacturing Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Renault Trucks Re Manufacturing Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it could 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the declining industry development. Intro of digital publishing might show to be an instant option with low quantity of threat for the business. However, the business could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer need, the prospective markets, the government policies and the information related to the rivals provided in the market. If the initial offering shows 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 development of the publishing market is decreasing given that 2008, revealing a risk to the company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
