Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Solution and Analysis
Intro
Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised several 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help has particular strengths that can be used to minimize the hazards, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position permits the company to consider several advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is declining considering that 2008, affecting Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing 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 decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually presented particular threats to Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The overall financial performance of the company might be evaluated by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help is growing and the company is rather effective in bring in a large number of clients at a prospective rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis total assets, reveals that the company is quite efficient in including worth to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis concerning the distribution of total revenues of the company. Major part of the earnings 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 segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the total business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Solution consists of 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 disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The altering consumer preferences towards digital knowing increase the threat 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. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Smartphone Industry In 2013 Samsungs Dilemma 2 Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an instant option to prevent the declining industry growth. For that reason, intro of digital publishing could show to be an instant option with low amount of risk for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must initially gathers the information related to the customer demand, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term presence, but the scenario can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.
