Steinway Sons Buying A Legend Case Study Solution and Analysis
Steinway Sons Buying A Legend Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting information, processing info and interaction services. Major service sectors of the business include; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research study reports and so on. Steinway Sons Buying A Legend Case Study Help has become a specialized info supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and Steinway Sons Buying A Legend Case Study Analysis in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions 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 business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Steinway Sons Buying A Legend Case Study Solution has particular strengths that can be made use of to lower the dangers, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Steinway Sons Buying A Legend Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weak points which might increase constraints for the company in executing its development program. The weak points of Steinway Sons Buying A Legend Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing market is declining since 2008, affecting Steinway Sons Buying A Legend Case Study Analysis too, but the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually posed certain risks to Steinway Sons Buying A Legend Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Steinway Sons Buying A Legend Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market along with presence of high competition increases the risk of losing the customer base.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the overall monetary efficiency of the business might be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Steinway Sons Buying A Legend Case Study Solution is growing and the company is rather effective in attracting a a great deal of consumers at a prospective price.
Along with it, the 2nd chart which shows the annual development in the Steinway Sons Buying A Legend Case Study Help overall assets, shows that the company is rather efficient in including worth to its possessions through its earnings. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of overall incomes of the business. Huge 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 service segments with a prospective development to accomplish its future advancement goal.
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Steinway Sons Buying A Legend Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces impacting Steinway Sons Buying A Legend Case Study Help includes 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 disposable and the ink utilized while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Steinway Sons Buying A Legend Case Study Analysis 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 total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry 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 costs.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Steinway Sons Buying A Legend Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Steinway Sons Buying A Legend Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the declining industry development. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer demand, the possible markets, the federal government policies and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.