Semiconductor Manufacturing International Company In 2011 Case Study Solution and Analysis
Semiconductor Manufacturing International Company In 2011 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and Semiconductor Manufacturing International Company In 2011 Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Semiconductor Manufacturing International Company In 2011 Case Study Solution has specific strengths that can be made use of to lower the threats, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Semiconductor Manufacturing International Company In 2011 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the company to consider numerous development opportunities without any fear of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Semiconductor Manufacturing International Company In 2011 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
The growth of the publishing market is declining because 2008, affecting Semiconductor Manufacturing International Company In 2011 Case Study Help as well, however the development might be revived by availing particular chances provided in the market. The market chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has presented certain threats to Semiconductor Manufacturing International Company In 2011 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Semiconductor Manufacturing International Company In 2011 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market along with existence of high competition increases the risk of losing the client base.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total revenues of Semiconductor Manufacturing International Company In 2011 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in drawing in a large number of clients at a potential cost.
Together with it, the second graph which shows the yearly growth in the Semiconductor Manufacturing International Company In 2011 Case Study Solution overall possessions, shows that the company is quite efficient in adding worth to its possessions through its profits. The development in possessions reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective growth to accomplish its future advancement objective.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Semiconductor Manufacturing International Company In 2011 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Semiconductor Manufacturing International Company In 2011 Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the general company at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Semiconductor Manufacturing International Company In 2011 Case Study Analysis includes the concerns 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 utilized while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market 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. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Semiconductor Manufacturing International Company In 2011 Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 market saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive industry with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Semiconductor Manufacturing International Company In 2011 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sections, with a significant focus 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 could wean the market share of Semiconductor Manufacturing International Company In 2011 Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Semiconductor Manufacturing International Company In 2011 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business need an immediate service to prevent the declining industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first gathers the data associated with the consumer need, the potential markets, the government regulations and the information associated with the rivals presented in the market. After that, the company ought to choose one possible section for its initial offering. It needs to gather research study that how it could distinguish its digital publishing from the existing competitors' products. After all the steps above the company ought to opt for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Although, the development of the publishing market is declining given that 2008, showing a threat to the business's long term presence, however the situation can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.