Steinway Sons Case Study Solution and Analysis
Steinway Sons 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 info company and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Steinway Sons Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Steinway Sons Case Study Help has specific strengths that can be utilized to minimize the risks, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Steinway Sons Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the business to consider a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase constraints for the business in implementing its development program. The weak points of Steinway Sons Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company 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 certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is decreasing given that 2008, affecting Steinway Sons Case Study Solution as well, but the growth might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition 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 vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned particular risks to Steinway Sons Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Steinway Sons Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be computed. However, the total monetary performance of the business could be analyzed by utilizing the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Steinway Sons Case Study Analysis is growing and the company is rather effective in bring in a large number of consumers at a prospective price.
Together with it, the second chart which shows the yearly development in the Steinway Sons Case Study Analysis total properties, reveals that the business is quite effective in adding worth to its assets through its revenues. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the distribution of overall profits of the company. Major part of the revenues 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 business segments with a prospective development to accomplish its future development goal.
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Steinway Sons Case Study Help in specific includesthe costs of paper, the income 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. In addition to it, the economic policies associated with the import of books affect the overall service at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Steinway Sons Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Steinway Sons Case Study Solution include the providers 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 Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Steinway Sons Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the business require an instant service to avoid the declining industry development. The company might also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to initially collects the data related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.