Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Solution and Analysis
Intro
Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 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; gathering details, processing info and communication services. Major service segments of the company include; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Help has become a specialized info service provider and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining 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 a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized 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
Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Solution has certain strengths that can be utilized to lower the threats, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis also, however the growth might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has posed specific hazards to Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. The total monetary efficiency of the company could be examined by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Solution is growing and the company is rather effective in bring in a a great deal of clients at a potential cost.
Along with it, the second chart which shows the yearly growth in the Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Help overall assets, shows that the business is rather efficient in including value to its properties through its earnings. The growth in possessions shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis relating to the distribution of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the overall company at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in 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 enter in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on particular sites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Solution consist of the suppliers of the paper for publishing 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 Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in various market sections, with a significant focus on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Sk Telecom Pursuing Happiness Through Corporate Social Responsibility 2 Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate 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 products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry growth. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially collects the data associated with the consumer need, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. After that, the company should choose one potential section for its initial offering. It should collect research study that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the company ought to opt for the initial offering. The business needs to go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a risk to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
