Strategic Management Of Technology Case Study Solution and Analysis
Intro
Strategic Management Of Technology Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Strategic Management Of Technology Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change 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 important experience, technical resources and the abilities of the company could be utilized 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 Solution has particular strengths that can be utilized to reduce the hazards, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Strategic Management Of Technology Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position permits the business to consider several advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase constraints for the company in executing its development program. The weak points of Strategic Management Of Technology Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining since 2008, affecting Strategic Management Of Technology Case Study Solution as well, but the development could be restored by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development 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 posed particular risks to Strategic Management Of Technology Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Strategic Management Of Technology Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total profits of Strategic Management Of Technology Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in attracting a big number of clients at a possible cost.
Along with it, the 2nd graph which shows the annual development in the Strategic Management Of Technology Case Study Solution overall possessions, reveals that the business is quite efficient in including value to its possessions through its revenues. The development in properties shows that the total worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis concerning the distribution of total earnings of the business. Huge 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 could move towards other organisation sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Strategic Management Of Technology Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Strategic Management Of Technology Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Strategic Management Of Technology Case Study Help consists of 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 used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together 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 Management Of Technology Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Strategic Management Of Technology Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major concentrate on instructional publications. CIP serves as a risk 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 market share of Strategic Management Of Technology Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Strategic Management Of Technology Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate service to avoid the decreasing industry development. Introduction of digital publishing might show to be an instant option with low quantity of threat for the company. Nevertheless, the business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company ought to first collects the information related to the customer need, the potential markets, the government regulations and the information related to the rivals provided in the market. If the initial offering proves a success, the business should 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 industry is decreasing because 2008, showing a danger to the company's long term presence, but the situation can be controlled by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
