Strategic Foresight An Exercise 2 Case Study Solution and Analysis
Introduction
Strategic Foresight An Exercise 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Strategic Foresight An Exercise 2 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 capabilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategic Foresight An Exercise 2 Case Study Help has specific strengths that can be made use of to decrease the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Strategic Foresight An Exercise 2 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position allows the company to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Strategic Foresight An Exercise 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting Strategic Foresight An Exercise 2 Case Study Analysis as well, however the development might be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented specific risks to Strategic Foresight An Exercise 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Strategic Foresight An Exercise 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall incomes of Strategic Foresight An Exercise 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a big number of consumers at a potential price.
Together with it, the second graph which shows the yearly development in the Strategic Foresight An Exercise 2 Case Study Help total properties, reveals that the company is rather efficient in including value to its properties through its earnings. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of total profits of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Strategic Foresight An Exercise 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies related to the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Strategic Foresight An Exercise 2 Case Study Solution includes the concerns of environmental 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 utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry 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 enter in the market.
Threat of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the files presented in the digital libraries on specific sites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
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. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Strategic Foresight An Exercise 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Strategic Foresight An Exercise 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market sections, with a major focus on instructional publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Strategic Foresight An Exercise 2 Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining market development. Introduction of digital publishing might prove to be an immediate service with low quantity of risk for the company. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data associated with the consumer demand, the potential markets, the federal government guidelines and the information associated with the competitors provided in the market. After that, the business must decide one potential segment for its initial offering. It should collect research study that how it might separate its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
