Strategic Planning At Sun Life 2 Case Study Solution and Analysis
Introduction
Strategic Planning At Sun Life 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and Strategic Planning At Sun Life 2 Case Study Analysis in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the business could be used 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 Planning At Sun Life 2 Case Study Analysis has particular strengths that can be used to reduce the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Strategic Planning At Sun Life 2 Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the business to consider several advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the business in executing its development program. The weaknesses of Strategic Planning At Sun Life 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, 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 development. It needs to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting Strategic Planning At Sun Life 2 Case Study Help as well, however the growth might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned particular dangers to Strategic Planning At Sun Life 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Strategic Planning At Sun Life 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry along with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It might be evaluated from the Appendix III that the yearly overall incomes of Strategic Planning At Sun Life 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in drawing in a large number of customers at a prospective price.
In addition to it, the second graph which reveals the yearly growth in the Strategic Planning At Sun Life 2 Case Study Solution total properties, reveals that the business is rather efficient in adding value to its properties through its revenues. The growth in possessions shows that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis relating to the distribution of total revenues of the company. Huge part of the earnings 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 sections with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the performance of the company and the current 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 effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Strategic Planning At Sun Life 2 Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Strategic Planning At Sun Life 2 Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Strategic Planning At Sun Life 2 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning 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 Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be used to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Strategic Planning At Sun Life 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Strategic Planning At Sun Life 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Strategic Planning At Sun Life 2 Case Study Help and CIP. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an immediate service to prevent the declining industry growth. The company could likewise 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 needs to initially collects the information related to the customer need, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a hazard to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
