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Sony Corporation Is The Sum Greater Than The Parts Case Solution

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Sony Corporation Is The Sum Greater Than The Parts Case Study Solution and Analysis


Introduction

Sony Corporation Is The Sum Greater Than The Parts Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Important Issues

CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis in specific. These aspects include;

• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The improvement 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 important experience, technical resources and the abilities of the company could be made use of 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


Sony Corporation Is The Sum Greater Than The Parts Case Study Solution has certain strengths that can be made use of to minimize the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;

• The long term experience of Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position permits the company to consider several development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the company has specific weak points which could increase restrictions for the business in executing its advancement program. The weak points of Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis are given as follows;

• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is declining given that 2008, impacting Sony Corporation Is The Sum Greater Than The Parts Case Study Help too, however the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;

• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.

Hazards

The altering macro trends in the market and increasing competition in the publishing industry has presented particular dangers to Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Sony Corporation Is The Sum Greater Than The Parts Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard 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 products, etc.
• Entryway of new publishing firms in the industry along with presence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be determined. Nevertheless, the total monetary performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of clients at a potential cost.

In addition to it, the 2nd chart which shows the yearly growth in the Sony Corporation Is The Sum Greater Than The Parts Case Study Solution overall assets, reveals that the company is quite effective in adding worth to its properties through its profits. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).

Another monetary analysis of the business using the provided information could be the analysis concerning the circulation of total revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces impacting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces include the population development, the customer's choices towards reading informative products etc. China has the greatest population worldwide with a high population development, revealing the increasing number of consumers of the Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces affecting Sony Corporation Is The Sum Greater Than The Parts Case Study Help includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.

Market Analysis (Porter's Five Forces Design).

Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.

Threat of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.

Risk of Replacement.

Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the digital libraries on certain sites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.

Competitive Rivalry.

Competitive competition in the publishing industry is high. The presence of large number of consumers 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 market increasing the competition for CMP.

Bargaining Power of Supplier.

The significant providers of the Sony Corporation Is The Sum Greater Than The Parts Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling 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 purchasers requires high quality files at competitive rates.

Rivals Analysis.

CMP runs in an extremely competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Sony Corporation Is The Sum Greater Than The Parts Case Study Analysis consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Established in the same duration, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks third and second in different market sectors, with a significant concentrate on educational publications. CIP serves as a risk 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 market share of Sony Corporation Is The Sum Greater Than The Parts Case Study Help quickly in the present market circumstance.

Posts and telecommunication Press (PTP).

It was also established in the same period as Sony Corporation Is The Sum Greater Than The Parts Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the company require an instant service to prevent the decreasing market development. The company might also think about the growth program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the business must initially collects the data related to the consumer demand, the prospective markets, the government guidelines and the information associated with the competitors presented in the market. After that, the business should choose one possible segment for its initial offering. It should collect research that how it might separate its digital publishing from the existing competitors' products. The actions above the company need to go for the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.

Conclusion

The development of the publishing market is decreasing since 2008, showing a threat to the business's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.

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