Rogers Communications Inc Case Study Solution and Analysis
Intro
Rogers Communications Inc Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Rogers Communications Inc Case Study Help has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
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 circumstance? Do the long important experience, technical resources and the capabilities of the business 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
Rogers Communications Inc Case Study Solution has specific strengths that can be made use of to decrease the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Rogers Communications Inc Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase constraints for the business in executing its development program. The weak points of Rogers Communications Inc Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, impacting Rogers Communications Inc Case Study Help as well, however the growth could be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has positioned certain dangers to Rogers Communications Inc Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Rogers Communications Inc Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the overall monetary performance of the company might be analyzed by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Rogers Communications Inc Case Study Solution is growing and the company is quite effective in drawing in a a great deal of clients at a potential cost.
Along with it, the 2nd graph which reveals the yearly growth in the Rogers Communications Inc Case Study Analysis overall assets, shows that the business is rather efficient in including worth to its assets through its revenues. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information might be the analysis regarding the circulation of total profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Rogers Communications Inc Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Rogers Communications Inc Case Study Analysis includes the issues of environmental 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 used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Rogers Communications Inc Case Study Solution consist of the providers 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.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Rogers Communications Inc Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the current market scenario.
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 6th in the state-owned publishers in terms of organisation scale. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors 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 company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant service to prevent the decreasing industry development. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first gathers the information connected to the customer demand, the potential markets, the government regulations and the information connected to the rivals provided in the market. After that, the business should choose one potential sector for its preliminary offering. It must gather research that how it might separate its digital publishing from the existing competitors' products. The steps above the business need to go for the initial offering. If the initial 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
The growth of the publishing industry is decreasing since 2008, revealing a danger to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
