Should You Have A Global Strategy 2 Case Study Solution and Analysis
Intro
Should You Have A Global Strategy 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Should You Have A Global Strategy 2 Case Study Analysis in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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
Should You Have A Global Strategy 2 Case Study Solution has certain strengths that can be utilized to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Should You Have A Global Strategy 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong monetary position enables the company to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Should You Have A Global Strategy 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Should You Have A Global Strategy 2 Case Study Solution as well, but the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually presented certain hazards to Should You Have A Global Strategy 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Should You Have A Global Strategy 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual total profits of Should You Have A Global Strategy 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a large number of customers at a possible rate.
Along with it, the second chart which reveals the annual development in the Should You Have A Global Strategy 2 Case Study Help overall assets, shows that the company is quite efficient in including value to its properties through its profits. The growth in assets shows that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the circulation of total earnings of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Should You Have A Global Strategy 2 Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Should You Have A Global Strategy 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Should You Have A Global Strategy 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the documents provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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 rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Should You Have A Global Strategy 2 Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence 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. Major rivals of Should You Have A Global Strategy 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an instant option to prevent the declining industry growth. For that reason, introduction of digital publishing could show to be an immediate solution with low amount of risk for the company. However, the company could also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should initially gathers the data related to the consumer demand, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term existence, but the circumstance can be controlled by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
