Stolt Nielsen Transportation Group 2 Case Study Solution and Analysis
Intro
Stolt Nielsen Transportation Group 2 Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized details provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Stolt Nielsen Transportation Group 2 Case Study Analysis in particular. These elements include;
• Entrance of the 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 change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be used 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
Stolt Nielsen Transportation Group 2 Case Study Analysis has specific strengths that can be used to reduce the hazards, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Stolt Nielsen Transportation Group 2 Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Stolt Nielsen Transportation Group 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Stolt Nielsen Transportation Group 2 Case Study Analysis as well, however the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific dangers to Stolt Nielsen Transportation Group 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Stolt Nielsen Transportation Group 2 Case Study Analysis 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 competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly overall revenues of Stolt Nielsen Transportation Group 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in bring in a big number of clients at a potential price.
Along with it, the 2nd graph which reveals the yearly growth in the Stolt Nielsen Transportation Group 2 Case Study Analysis total assets, reveals that the company is rather effective in including worth to its possessions through its revenues. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of total revenues of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out informative products etc. China has the highest population in the world with a high population growth, revealing the increasing number of consumers of the Stolt Nielsen Transportation Group 2 Case Study Analysis. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Stolt Nielsen Transportation Group 2 Case Study Analysis includes the issues of environmental 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 used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Stolt Nielsen Transportation Group 2 Case Study Help 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 Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Stolt Nielsen Transportation Group 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and second in various market sectors, with a significant concentrate on instructional publications. CIP serves 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 Stolt Nielsen Transportation Group 2 Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Therefore, introduction of digital publishing might show to be an instant service with low quantity of danger for the company. Nevertheless, the business might also think about 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 associated with the customer demand, the possible markets, the federal government regulations and the information associated with the rivals presented in the market. After that, the business must choose one possible section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company must go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term presence, however the scenario can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.
