Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution and Analysis
Intro
Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 scenario? Do the long valuable 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Help has certain strengths that can be used to lower the risks, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position enables the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, affecting Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Analysis also, however the growth might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has actually posed particular hazards to Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution due to the consumer shift towards digital libraries.
• The presence 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 consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total incomes of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite effective in bring in a large number of customers at a potential price.
In addition to it, the second chart which shows the annual growth in the Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution overall possessions, shows that the business is rather effective in including value to its properties through its revenues. The growth in assets reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis relating to the distribution of overall profits of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of consumers of the Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution. The consumer 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 customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Analysis consists of the concerns 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 should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry 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 rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a major concentrate on educational publications. CIP serves 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 marketplace share of Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Stag International Strategic Dilemmas Of A Growing Family Owned Indian Business Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data related to the customer demand, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the business's long term existence, but the circumstance can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
