Siemen Ag Global Development Strategy Case Study Solution and Analysis
Intro
Siemen Ag Global Development Strategy Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing information and communication services. Significant service sections of the company consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products include books, regulars, online media, exhibits, research study reports and so on. Siemen Ag Global Development Strategy Case Study Analysis has actually ended up being a specialized details supplier and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
Although, Siemen Ag Global Development Strategy Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Siemen Ag Global Development Strategy Case Study Help has certain strengths that can be made use of to reduce the dangers, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Siemen Ag Global Development Strategy Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the company to think about a number of development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Siemen Ag Global Development Strategy Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Siemen Ag Global Development Strategy Case Study Analysis too, however the growth could be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has positioned certain threats to Siemen Ag Global Development Strategy Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Siemen Ag Global Development Strategy Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry along with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the company might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of Siemen Ag Global Development Strategy Case Study Solution is growing and the company is rather efficient in attracting a a great deal of customers at a possible cost.
Along with it, the second graph which reveals the annual growth in the Siemen Ag Global Development Strategy Case Study Help total assets, shows that the company is rather efficient in adding worth to its assets through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis regarding the distribution of overall revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Siemen Ag Global Development Strategy Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the overall service at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices 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 customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and technology together with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Siemen Ag Global Development Strategy Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five 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 attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the danger of alternative for the market.
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 and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Siemen Ag Global Development Strategy Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total 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 large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Siemen Ag Global Development Strategy Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on educational publications. CIP serves 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 Siemen Ag Global Development Strategy Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Siemen Ag Global Development Strategy Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry development. Introduction of digital publishing could show to be an immediate service with low amount of danger for the business. 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 product portfolio, the company needs to initially collects the information associated with the consumer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the business needs to choose one possible sector for its initial offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' products. After all the actions above the business need to opt for the preliminary offering. The company should go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term existence, however the situation can be controlled by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
