Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution and Analysis
Introduction
Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Help in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 valuable experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution has certain strengths that can be made use of to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position allows the company to think about a number of advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restraints for the business in executing its advancement program. The weak points of Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional 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 attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, impacting Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Analysis also, but the development might be revived by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has postured certain threats to Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. Nevertheless, the overall financial performance of the company could be evaluated by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution is growing and the company is quite effective in drawing in a a great deal of customers at a potential price.
Together with it, the second graph which reveals the annual growth in the Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution total possessions, reveals that the business is rather efficient in including value to its properties through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis relating to the circulation of total profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service segments with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the company and the recent patterns 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 might have a substantial effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly 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 Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Help in particular 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. In addition to it, the economic policies related to the import of books impact the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading helpful products and so on. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Sold To The Highest Bidder In Japan Operational Challenges And Culture 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 needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger 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 new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on specific sites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Sold To The Highest Bidder In Japan Operational Challenges And Culture Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an instant option to prevent the declining industry growth. Introduction of digital publishing could show to be an immediate solution with low quantity of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information related to the customer need, the potential markets, the federal government regulations and the data associated with the competitors presented in the market. After that, the company needs to choose one potential section for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' items. The steps above the company need to go for the preliminary offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a threat to the business's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
