Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution and Analysis
Introduction
Sheikh Mohammed And The Making Of Dubai Inc Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering details, processing info and communication services. Significant business sections of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Sheikh Mohammed And The Making Of Dubai Inc Case Study Help has actually ended up being a specialized info service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in general and Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be used 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
Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution has certain strengths that can be used to lower the threats, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong monetary position allows the company to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Sheikh Mohammed And The Making Of Dubai Inc Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Sheikh Mohammed And The Making Of Dubai Inc Case Study Help as well, but the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has presented particular dangers to Sheikh Mohammed And The Making Of Dubai Inc Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market along with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be calculated. The general financial performance of the business could be examined by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Sheikh Mohammed And The Making Of Dubai Inc Case Study Help is growing and the business is rather efficient in attracting a a great deal of customers at a prospective price.
Together with it, the 2nd graph which shows the annual development in the Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution total assets, shows that the business is quite efficient in including worth to its possessions through its profits. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the offered information might be the analysis concerning the circulation of total earnings of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Sheikh Mohammed And The Making Of Dubai Inc Case Study Analysis includes the concerns of environmental neighborhoods 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Sheikh Mohammed And The Making Of Dubai Inc Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sheikh Mohammed And The Making Of Dubai Inc Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in various market sections, with a major focus on academic publications. CIP acts 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 market share of Sheikh Mohammed And The Making Of Dubai Inc Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. Intro of digital publishing might prove to be an instant solution with low quantity of risk for the company. The business could also consider the growth 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 policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a danger to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
