Strategic Management 2 Case Study Solution and Analysis
Introduction
Strategic Management 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing information and communication services. Significant company segments of the business consist of; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Strategic Management 2 Case Study Analysis has actually ended up being a specialized information provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and Strategic Management 2 Case Study Help in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 business could be utilized 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
Strategic Management 2 Case Study Analysis has certain strengths that can be utilized to lower the dangers, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Strategic Management 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position permits the business to think about a number of development opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Strategic Management 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Strategic Management 2 Case Study Help too, however the development could be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has presented particular threats to Strategic Management 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Strategic Management 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be determined. However, the overall financial efficiency of the business could be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Strategic Management 2 Case Study Solution is growing and the business is quite effective in attracting a large number of clients at a prospective cost.
In addition to it, the second chart which reveals the annual development in the Strategic Management 2 Case Study Analysis overall possessions, shows that the company is rather efficient in adding worth to its assets through its profits. The growth in properties shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided 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 Party of China. It could be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Strategic Management 2 Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books affect the overall service at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative products etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Strategic Management 2 Case Study Solution. The customer 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 changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Strategic Management 2 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the 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 Five Forces Design could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Strategic Management 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market 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 documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Strategic Management 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Strategic Management 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing 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 possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should initially collects the data related to the consumer demand, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a danger to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
