Semiconductor Manufacturing International Company In 2011 2 Case Study Solution and Analysis
Introduction
Semiconductor Manufacturing International Company In 2011 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and Semiconductor Manufacturing International Company In 2011 2 Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Semiconductor Manufacturing International Company In 2011 2 Case Study Help has certain strengths that can be utilized to reduce the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Semiconductor Manufacturing International Company In 2011 2 Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position allows the business to consider several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Semiconductor Manufacturing International Company In 2011 2 Case Study Analysis are given 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 must propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Semiconductor Manufacturing International Company In 2011 2 Case Study Analysis too, however the growth could be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has postured particular dangers to Semiconductor Manufacturing International Company In 2011 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Semiconductor Manufacturing International Company In 2011 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall incomes of Semiconductor Manufacturing International Company In 2011 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is rather efficient in bring in a big number of consumers at a potential rate.
Together with it, the 2nd chart which shows the annual development in the Semiconductor Manufacturing International Company In 2011 2 Case Study Solution total possessions, reveals that the company is quite efficient in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the given information could be the analysis relating to the distribution of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be said that the overall political forces affecting Semiconductor Manufacturing International Company In 2011 2 Case Study Help company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Semiconductor Manufacturing International Company In 2011 2 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative materials etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Semiconductor Manufacturing International Company In 2011 2 Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Semiconductor Manufacturing International Company In 2011 2 Case Study Solution consists of the concerns of ecological neighborhoods over the use 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 should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Semiconductor Manufacturing International Company In 2011 2 Case Study Analysis include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Semiconductor Manufacturing International Company In 2011 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sections, with a significant focus on educational publications. CIP functions as a hazard 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 Semiconductor Manufacturing International Company In 2011 2 Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Semiconductor Manufacturing International Company In 2011 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus 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.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business should initially collects the data related to the consumer demand, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. After that, the company should decide one potential sector for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the company should opt for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term existence, however the situation can be controlled by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
