Steinway Sons Buying A Legend Case Study Solution and Analysis
Introduction
Steinway Sons Buying A Legend Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and communication services. Major company sections of the company consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Steinway Sons Buying A Legend Case Study Analysis has ended up being a specialized details company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and Steinway Sons Buying A Legend Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Steinway Sons Buying A Legend Case Study Solution has certain strengths that can be made use of to decrease the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Steinway Sons Buying A Legend Case Study Solution in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong monetary position enables the company to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase constraints for the business in executing its development program. The weaknesses of Steinway Sons Buying A Legend Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Steinway Sons Buying A Legend Case Study Help as well, however the growth might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce 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 decrease its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has actually positioned specific threats to Steinway Sons Buying A Legend Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Steinway Sons Buying A Legend Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly total revenues of Steinway Sons Buying A Legend Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather effective in bring in a big number of customers at a possible rate.
Together with it, the second chart which reveals the yearly development in the Steinway Sons Buying A Legend Case Study Solution total assets, shows that the company is quite efficient in including value to its properties through its earnings. The growth in properties reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis relating to the distribution of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation segments with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting Steinway Sons Buying A Legend Case Study Analysis service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Steinway Sons Buying A Legend Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Steinway Sons Buying A Legend Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on particular websites. The altering customer choices towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise 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 Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Steinway Sons Buying A Legend Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market development. Therefore, introduction of digital publishing might prove to be an immediate solution with low amount of risk for the company. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially gathers the data related to the customer need, the possible markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a hazard to the business's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
