Strategic Management Case Study Solution and Analysis
Intro
Strategic Management Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing information and communication services. Significant business sectors of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Strategic Management Case Study Solution has actually become a specialized information provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Strategic Management Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to strive for 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 Case Study Solution has particular strengths that can be utilized to decrease the hazards, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Strategic Management Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong financial position allows the business to think about numerous development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which could increase restrictions for the business in implementing its advancement program. The weak points of Strategic Management Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing because 2008, impacting Strategic Management Case Study Solution as well, but the development might be restored by availing specific 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 customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has postured particular threats to Strategic Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Strategic Management Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall earnings of Strategic Management Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather effective in attracting a large number of clients at a potential price.
In addition to it, the 2nd graph which shows the annual development in the Strategic Management Case Study Solution total possessions, reveals that the company is quite effective in adding value to its assets through its incomes. The development in possessions shows that the overall value of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis relating to the distribution of overall revenues of the business. 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 business sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the efficiency of the company and the recent patterns 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 might have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP service 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 basic and the Strategic Management Case Study Help in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the overall company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Strategic Management Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Strategic Management Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the documents provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Strategic Management Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Strategic Management Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Strategic Management Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an instant service to avoid the declining industry development. Therefore, introduction of digital publishing might prove to be an immediate service with low amount of danger for the company. The business might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the information related to the customer need, the possible markets, the government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a risk to the business's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
