Strategic Plan Case Study Solution and Analysis
Introduction
Strategic Plan Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Significant service sections of the company consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major items include books, regulars, online media, exhibitions, research reports etc. Strategic Plan Case Study Analysis has actually become a specialized information company and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Strategic Plan Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
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 business could be made use of 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 Plan Case Study Analysis has particular strengths that can be used to minimize the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Strategic Plan Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position enables the business to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weak points of Strategic Plan Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Strategic Plan Case Study Solution as well, however the growth could be restored by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain dangers to Strategic Plan Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Strategic Plan Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number 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 customer base by using specific techniques like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry together with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the company might be analyzed by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Strategic Plan Case Study Analysis is growing and the company is quite efficient in bring in a large number of customers at a possible price.
In addition to it, the 2nd graph which shows the annual growth in the Strategic Plan Case Study Help total assets, shows that the company is quite effective in including value to its possessions through its revenues. The development in assets shows that the total value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis relating to the distribution of total incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces impacting Strategic Plan Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
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 in the world with a high population growth, revealing the increasing number of consumers of the Strategic Plan Case Study Solution. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Strategic Plan Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs 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 initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Strategic Plan Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Strategic Plan Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the decreasing market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information connected to the consumer need, the prospective markets, the government regulations and the data associated with the competitors provided in the market. After that, the company needs to decide one possible sector for its initial offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the business should go for the initial offering. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
