Second Group Report Microsoft Corporation Case Study Solution and Analysis
Introduction
Second Group Report Microsoft Corporation Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing info and interaction services. Significant service sections of the company consist of; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Second Group Report Microsoft Corporation Case Study Solution has become a specialized details company and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Second Group Report Microsoft Corporation Case Study Help in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Second Group Report Microsoft Corporation Case Study Solution has certain strengths that can be used to decrease the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Second Group Report Microsoft Corporation Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong monetary position permits the business to consider several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase restrictions for the business in executing its development program. The weaknesses of Second Group Report Microsoft Corporation Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, affecting Second Group Report Microsoft Corporation Case Study Solution too, however the development might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has presented specific threats to Second Group Report Microsoft Corporation Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Second Group Report Microsoft Corporation Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the general monetary efficiency of the business could be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Second Group Report Microsoft Corporation Case Study Help is growing and the company is rather efficient in bring in a large number of consumers at a prospective rate.
Together with it, the second chart which reveals the annual growth in the Second Group Report Microsoft Corporation Case Study Help total properties, shows that the company is rather efficient in adding worth to its assets through its earnings. The growth in properties reveals that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered data could be the analysis concerning the distribution of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Second Group Report Microsoft Corporation Case Study Analysis business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative materials and so on. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Second Group Report Microsoft Corporation Case Study Analysis. However, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Second Group Report Microsoft Corporation Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Second Group Report Microsoft Corporation Case Study Solution 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 provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Second Group Report Microsoft Corporation Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on instructional publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Second Group Report Microsoft Corporation Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Second Group Report Microsoft Corporation Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to avoid the decreasing industry development. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer need, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the business needs to choose one prospective segment for its initial offering. It needs to gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the business ought to opt for the initial offering. If the preliminary offering shows a success, the business must opt for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
