Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution and Analysis
Intro
Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis has certain strengths that can be used to decrease the dangers, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong monetary position permits the company to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its development program. The weak points of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution also, but the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. However, the general monetary performance of the company could be examined by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis is growing and the company is quite effective in drawing in a large number of customers at a prospective rate.
Together with it, the second graph which shows the yearly growth in the Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Help overall possessions, shows that the business is rather effective in adding value to its assets through its profits. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the distribution of total earnings of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books impact the general business at CPM. China's economic conditions are quite 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 conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation along with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Solution consists of the concerns of ecological neighborhoods over the usage 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 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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 also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Analysis 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 very same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a significant focus on academic publications. CIP functions as a hazard 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 marketplace share of Slicing Pie With A Razor Ockham Technologies Founding Agreement Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing market development. The business could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the consumer demand, the potential markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term existence, but the situation can be managed by thinking about a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
