Stolt Nielsen Transportation Group C Case Study Solution and Analysis
Introduction
Stolt Nielsen Transportation Group C Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing details and communication services. Significant service sectors of the company consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. Stolt Nielsen Transportation Group C Case Study Help has actually become a specialized details company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Stolt Nielsen Transportation Group C Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stolt Nielsen Transportation Group C Case Study Solution has certain strengths that can be used to minimize the risks, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Stolt Nielsen Transportation Group C Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the company to think about several advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Stolt Nielsen Transportation Group C Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Stolt Nielsen Transportation Group C Case Study Analysis as well, however the growth could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has positioned certain hazards to Stolt Nielsen Transportation Group C Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Stolt Nielsen Transportation Group C Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. The overall monetary performance of the business might be analyzed by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Stolt Nielsen Transportation Group C Case Study Analysis is growing and the business is rather efficient in attracting a large number of clients at a prospective price.
In addition to it, the 2nd chart which reveals the yearly development in the Stolt Nielsen Transportation Group C Case Study Solution overall assets, shows that the business is quite efficient in including value to its properties through its earnings. The growth in assets reveals that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis concerning the circulation of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Stolt Nielsen Transportation Group C Case Study Help organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Stolt Nielsen Transportation Group C Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Along with it, the financial policies associated with the import of books affect the general business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Stolt Nielsen Transportation Group C Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Stolt Nielsen Transportation Group C Case Study Analysis include the suppliers of the paper for releasing files. 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.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Stolt Nielsen Transportation Group C Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant concentrate on instructional publications. 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 could wean the marketplace share of Stolt Nielsen Transportation Group C Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Stolt Nielsen Transportation Group C Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to prevent the declining industry growth. Intro of digital publishing could prove to be an instant service with low quantity of threat for the company. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business must first collects the data related to the consumer need, the possible markets, the government regulations and the data related to the rivals presented in the market. After that, the business ought to decide one prospective segment for its initial offering. It needs to gather research that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company need to choose the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a hazard to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.
