Siemens Ag Key Account Management 2 Case Study Solution and Analysis
Introduction
Siemens Ag Key Account Management 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing details and interaction services. Major service sections of the business include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Siemens Ag Key Account Management 2 Case Study Analysis has actually become a specialized info service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and Siemens Ag Key Account Management 2 Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
Siemens Ag Key Account Management 2 Case Study Solution has certain strengths that can be used to lower the dangers, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Siemens Ag Key Account Management 2 Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong monetary position permits the business to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Siemens Ag Key Account Management 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting Siemens Ag Key Account Management 2 Case Study Solution also, but the growth might be restored by availing particular chances provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by utilizing 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 huge financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing market has actually postured certain risks to Siemens Ag Key Account Management 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Siemens Ag Key Account Management 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly total incomes of Siemens Ag Key Account Management 2 Case Study Help during 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 rather efficient in attracting a big number of clients at a potential rate.
Together with it, the 2nd chart which reveals the yearly development in the Siemens Ag Key Account Management 2 Case Study Analysis overall properties, shows that the company is rather efficient in adding worth to its assets through its revenues. The growth in properties reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the distribution of total revenues of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Siemens Ag Key Account Management 2 Case Study Solution in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books affect the total business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Siemens Ag Key Account Management 2 Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal policies 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 Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Siemens Ag Key Account Management 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Siemens Ag Key Account Management 2 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 same duration, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant concentrate on instructional publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Siemens Ag Key Account Management 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Siemens Ag Key Account Management 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
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 brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the decreasing industry growth. Intro of digital publishing could prove to be an immediate solution with low quantity of threat for the business. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
