Siemen Ag Global Development Strategy 2 Case Study Solution and Analysis
Introduction
Siemen Ag Global Development Strategy 2 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing details and interaction services. Major business segments of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports and so on. Siemen Ag Global Development Strategy 2 Case Study Help has actually ended up being a specialized info provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in general and Siemen Ag Global Development Strategy 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Siemen Ag Global Development Strategy 2 Case Study Solution has particular strengths that can be made use of to minimize the hazards, overcome the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of Siemen Ag Global Development Strategy 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position permits the company to think about a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restraints for the company in implementing its development program. The weaknesses of Siemen Ag Global Development Strategy 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting Siemen Ag Global Development Strategy 2 Case Study Solution too, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has positioned certain risks to Siemen Ag Global Development Strategy 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Siemen Ag Global Development Strategy 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be determined. Nevertheless, the total financial performance of the business might be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Siemen Ag Global Development Strategy 2 Case Study Analysis is growing and the company is quite effective in drawing in a large number of consumers at a prospective cost.
In addition to it, the second graph which shows the annual growth in the Siemen Ag Global Development Strategy 2 Case Study Help total assets, shows that the company is rather effective in including worth to its possessions through its earnings. The growth in assets reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the distribution of total incomes of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving 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.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Siemen Ag Global Development Strategy 2 Case Study Analysis consists of 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 non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Siemen Ag Global Development Strategy 2 Case Study Help consist of the providers 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.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely 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 rivals of Siemen Ag Global Development Strategy 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential 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 using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant option to avoid the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data connected to the consumer demand, the potential markets, the government guidelines and the data associated with the competitors presented in the market. After that, the business ought to choose one potential sector for its preliminary offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the business ought to go for the initial offering. The business should go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, however the situation can be controlled by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
