Strategic Foresight An Exercise Case Study Solution and Analysis
Strategic Foresight An Exercise Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing information and interaction services. Major organisation sections of the business consist of; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Strategic Foresight An Exercise Case Study Solution has actually ended up being a specialized information service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Strategic Foresight An Exercise Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Strategic Foresight An Exercise Case Study Solution has specific strengths that can be utilized to minimize the dangers, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Strategic Foresight An Exercise Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Together with the strengths, the company has certain weak points which might increase restraints for the business in implementing its development program. The weak points of Strategic Foresight An Exercise Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business 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 must propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The development of the publishing market is decreasing given that 2008, affecting Strategic Foresight An Exercise Case Study Solution as well, however the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned certain risks to Strategic Foresight An Exercise Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Strategic Foresight An Exercise Case Study Help due to the consumer shift towards virtual libraries.
• The presence 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 gain a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry together with existence of high competition increases the risk of losing the client base.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. However, the overall financial performance of the business might be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Strategic Foresight An Exercise Case Study Analysis is growing and the company is quite effective in bring in a large number of customers at a potential rate.
Together with it, the second chart which shows the annual development in the Strategic Foresight An Exercise Case Study Analysis overall assets, reveals that the business is quite efficient in including worth to its assets through its earnings. The development in properties reveals that the overall worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the distribution of total profits of the company. Huge part of the profits 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 company segments with a prospective growth to achieve its future advancement goal.
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting Strategic Foresight An Exercise Case Study Analysis business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Strategic Foresight An Exercise Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books affect the general business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out useful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Strategic Foresight An Exercise Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Strategic Foresight An Exercise 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 needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Strategic Foresight An Exercise Case Study Help 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 Buyer.
Negotiating 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 market saturation, the purchasers needs high quality files at competitive costs.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Strategic Foresight An Exercise Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus 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 products in the market.
As the choices are shifting towards digital publishing and the company require an instant option to avoid the decreasing industry development. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company ought to first gathers the data connected to the customer need, the prospective markets, the government regulations and the information related to the competitors provided in the market. After that, the company needs to decide one prospective sector for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the company need to opt for the initial offering. If the preliminary offering proves a success, the company must opt for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing market is declining considering that 2008, showing a hazard to the company's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.