Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution and Analysis
Introduction
Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing info and communication services. Major service segments of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Help has actually become a specialized info supplier and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised a number of concerns 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 company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Help has particular strengths that can be made use of to lower the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the company to consider several development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase restrictions for the company in executing its advancement program. The weak points of Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, 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 growth. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis as well, however the development might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be examined from the Appendix III that the annual overall incomes of Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite effective in bring in a large number of customers at a potential rate.
Along with it, the second graph which reveals the yearly development in the Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis total assets, shows that the business is quite efficient in including value to its assets through its incomes. The growth in assets shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis relating to the distribution of total revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis company 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 basic and the Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the general organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Help. However, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Siemens Building A Structure To Drive Performance And Responsibility A 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining industry development. Introduction of digital publishing could show to be an immediate service with low amount of risk for the company. However, the business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially collects the information related to the customer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
