Stolt Nielsen Transportation Group Case Study Solution and Analysis
Intro
Stolt Nielsen Transportation Group Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Stolt Nielsen Transportation Group Case Study Solution has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stolt Nielsen Transportation Group Case Study Solution has specific strengths that can be utilized to reduce the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Stolt Nielsen Transportation Group Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the business to think about several advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase constraints for the business in implementing its development program. The weak points of Stolt Nielsen Transportation Group Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing since 2008, affecting Stolt Nielsen Transportation Group Case Study Help as well, however the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has presented specific dangers to Stolt Nielsen Transportation Group Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Stolt Nielsen Transportation Group Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. However, the total monetary performance of the company might be examined by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Stolt Nielsen Transportation Group Case Study Help is growing and the company is quite effective in drawing in a a great deal of customers at a prospective cost.
In addition to it, the second graph which shows the annual growth in the Stolt Nielsen Transportation Group Case Study Help total properties, shows that the business is rather effective in adding worth to its assets through its revenues. The development in possessions reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis relating to the circulation of total incomes of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Stolt Nielsen Transportation Group Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies associated with the import of books impact the total organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth 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 should focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Stolt Nielsen Transportation Group Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five 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 market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Stolt Nielsen Transportation Group Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Stolt Nielsen Transportation Group Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in different market sections, with a significant focus on academic publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Stolt Nielsen Transportation Group Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Stolt Nielsen Transportation Group Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should initially collects the information related to the consumer need, the potential markets, the government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a danger to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
