Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Solution and Analysis
Introduction
Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing information and communication services. Major service sectors of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports and so on. Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Analysis has actually become a specialized information provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help has specific strengths that can be utilized to minimize the threats, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong financial position enables the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weak points of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help as well, however the development might be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has presented particular risks to Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be computed. The total monetary efficiency of the business might be analyzed by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Analysis is growing and the company is rather efficient in drawing in a large number of clients at a possible rate.
Along with it, the second chart which shows the annual growth in the Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help total properties, reveals that the company is quite efficient in adding worth to its assets through its earnings. The development in assets reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis relating to the distribution of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help includes the issues of ecological neighborhoods 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 must not be hazardous for the environment.
Legal.
Legal regulations 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 authorized 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 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the digital libraries on specific sites. The altering customer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in numerous market sections, with a significant focus on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Sk Planet In 2013 A Korean Giants Big Bet On The U S Market Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant option to prevent the decreasing industry development. The company could 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 needs to first gathers the data related to the consumer need, the possible markets, the government guidelines and the data related to the rivals presented in the market. After that, the business needs to decide one prospective section for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business must go for the initial offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, however the scenario can be controlled by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
