Rio Tinto Groups Sustainable Development Agenda Case Study Solution and Analysis
Intro
Rio Tinto Groups Sustainable Development Agenda Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Rio Tinto Groups Sustainable Development Agenda Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Rio Tinto Groups Sustainable Development Agenda Case Study Help has specific strengths that can be used to reduce the dangers, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Rio Tinto Groups Sustainable Development Agenda Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position allows the business to think about a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the business in implementing its development program. The weak points of Rio Tinto Groups Sustainable Development Agenda Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing since 2008, impacting Rio Tinto Groups Sustainable Development Agenda Case Study Help as well, but the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually positioned particular hazards to Rio Tinto Groups Sustainable Development Agenda Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Rio Tinto Groups Sustainable Development Agenda Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market together with existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be computed. The general monetary performance of the company might be examined by utilizing the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Rio Tinto Groups Sustainable Development Agenda Case Study Analysis is growing and the business is quite effective in drawing in a large number of clients at a prospective rate.
In addition to it, the 2nd graph which shows the yearly development in the Rio Tinto Groups Sustainable Development Agenda Case Study Analysis overall possessions, reveals that the business is quite effective in adding worth to its properties through its earnings. The growth in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis relating to the distribution of total incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the total 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 Rio Tinto Groups Sustainable Development Agenda Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies related to the import of books impact the general business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer 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 consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Rio Tinto Groups Sustainable Development Agenda Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing industry. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence 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. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Rio Tinto Groups Sustainable Development Agenda Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Rio Tinto Groups Sustainable Development Agenda Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Rio Tinto Groups Sustainable Development Agenda Case Study Help and CIP. It is also one of the popular players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 company sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of danger for the business. However, the business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company ought to first collects the data related to the consumer need, the possible markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
