Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution and Analysis
Intro
Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and communication services. Significant service segments of the company consist of; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports and so on. Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution has actually become a specialized information supplier and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change of the macro markets have raised several 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 company 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
Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution has particular strengths that can be made use of to minimize the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong monetary position enables the company to consider numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase constraints for the business in implementing its development program. The weak points of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Analysis as well, however the development might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has postured certain risks to Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall financial efficiency of the business might be examined by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution is growing and the company is quite efficient in attracting a large number of clients at a prospective price.
In addition to it, the second graph which reveals the annual growth in the Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help overall properties, shows that the company is quite efficient in adding worth to its assets through its earnings. The growth in properties shows that the total value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis concerning the circulation of total incomes of the company. Major 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 company could move towards other organisation sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The federal 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 income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer 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 customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Solution consist of the suppliers of the paper for releasing documents. 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 purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on educational publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Sheng Siong Supermarket Building And Sustaining Competitive Advantage 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are moving towards digital publishing and the business require an instant option to avoid the declining industry growth. Intro of digital publishing might show to be an immediate option with low amount of risk for the company. Nevertheless, the business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the customer need, the possible markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, revealing a risk to the company's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
