Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution and Analysis
Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution is the biggest 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 big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution in particular. These factors consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development 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 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 capabilities 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?
Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution has certain strengths that can be utilized to reduce the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its consumers.
• Strong financial position allows the business to think about a number of advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term development.
The growth of the publishing industry is decreasing given that 2008, impacting Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help as well, however the growth might be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market together with presence of high competitors increases the risk of losing the client base.
The company has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP might not be computed. The general financial performance of the company could be evaluated by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help is growing and the business is rather efficient in drawing in a large number of customers at a prospective cost.
Along with it, the second chart which reveals the yearly growth in the Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution overall assets, reveals that the company is quite effective in adding value to its properties through its profits. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information might 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 released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a potential growth to achieve its future development objective.
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the danger of substitution for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Help consist of 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 Buyer.
Negotiating power of purchaser 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.
CMP runs in an extremely competitive market with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Smartphone Industry In 2013 Samsungs Dilemma 3 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 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 service scale. It is also among the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an immediate service to prevent the declining industry growth. Intro of digital publishing could prove to be an immediate option with low quantity of danger for the business. However, the company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first collects the information connected to the consumer demand, the potential markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the business should choose one potential segment for its initial offering. It must gather research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the business should opt for the preliminary offering. The company ought to go for the other markets if the initial offering proves a success. In this way the business would have the ability to implement its digital publishing program.
The growth of the publishing industry is declining since 2008, revealing a threat to the business's long term existence, however the situation can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.