Strategic Management Of Technology Case Study Solution and Analysis
Intro
Strategic Management Of Technology Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing information and interaction services. Major organisation segments of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products include books, regulars, online media, exhibits, research study reports etc. Strategic Management Of Technology Case Study Solution has actually become a specialized details provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in general and Strategic Management Of Technology Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous 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 capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategic Management Of Technology Case Study Help has specific strengths that can be made use of to lower the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Strategic Management Of Technology Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its development program. The weak points of Strategic Management Of Technology Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Strategic Management Of Technology Case Study Analysis as well, but the growth might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business 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.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented particular risks to Strategic Management Of Technology Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Strategic Management Of Technology Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be examined from the Appendix III that the yearly overall incomes of Strategic Management Of Technology Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in drawing in a big number of consumers at a possible price.
Along with it, the second graph which shows the yearly development in the Strategic Management Of Technology Case Study Solution total properties, shows that the company is quite effective in including worth to its possessions through its revenues. The growth in possessions shows that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the circulation of overall profits of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Strategic Management Of Technology Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings 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.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Strategic Management Of Technology Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Strategic Management Of Technology Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Strategic Management Of Technology Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Strategic Management Of Technology Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an immediate service to avoid the declining market development. For that reason, intro of digital publishing could show to be an instant service with low quantity of danger for the company. The company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially collects the information related to the consumer demand, the potential markets, the government guidelines 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 method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a hazard to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
