Samsung Electronics 2 Case Study Solution and Analysis
Intro
Samsung Electronics 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing information and interaction services. Major company sectors of the business include; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Samsung Electronics 2 Case Study Analysis has ended up being a specialized details company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and Samsung Electronics 2 Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 capabilities 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
Samsung Electronics 2 Case Study Solution has certain strengths that can be utilized to reduce the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Samsung Electronics 2 Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position enables the business to think about several advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which might increase restrictions for the company in executing its development program. The weaknesses of Samsung Electronics 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting Samsung Electronics 2 Case Study Help as well, but the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned particular dangers to Samsung Electronics 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Samsung Electronics 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total incomes of Samsung Electronics 2 Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of customers at a potential price.
In addition to it, the second chart which shows the yearly growth in the Samsung Electronics 2 Case Study Help total possessions, reveals that the business is rather efficient in including value to its assets through its earnings. The development in assets shows that the overall value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis regarding the circulation of total earnings of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Samsung Electronics 2 Case Study Analysis business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting 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 development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading informative products etc. China has the greatest population worldwide with a high population development, showing the increasing variety of consumers of the Samsung Electronics 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Samsung Electronics 2 Case Study Solution consists of the concerns of ecological communities over the use 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 ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Samsung Electronics 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Samsung Electronics 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a significant concentrate on academic publications. CIP acts as a risk 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 marketplace share of Samsung Electronics 2 Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Samsung Electronics 2 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with an annual overall revenues 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 chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an instant service to prevent the decreasing industry growth. The business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the information related to the consumer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, revealing a risk to the company's long term presence, but the scenario can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
