Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution and Analysis
Intro
Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and interaction services. Significant service sections of the business include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Analysis has ended up being a specialized details supplier and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement 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 important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help has particular strengths that can be made use of to lower the hazards, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to consider several development chances with no fear 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 implementing its advancement program. The weaknesses of Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining since 2008, impacting Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Analysis as well, but the development could be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed specific threats to Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. Nevertheless, the general financial performance of the business could be analyzed by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution is growing and the business is quite effective in bring in a a great deal of clients at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution total properties, reveals that the company is rather efficient in adding value to its possessions through its profits. The development in properties shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis regarding the circulation of total revenues of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 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 Design could be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents presented in the virtual libraries on certain websites. The altering consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Analysis include;.
• Chemical Market 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 might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Strategic Risk Management At Titan Shipping Company Lessons From Metallgesellschaft Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-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 market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business require an immediate option to avoid the decreasing industry development. For that reason, intro of digital publishing might prove to be an immediate option with low amount of threat for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data associated with the customer need, the prospective markets, the federal government policies and the data associated with the rivals provided in the market. After that, the business must decide one possible segment for its initial offering. It should collect research that how it might separate its digital publishing from the existing rivals' items. The steps above the company ought to go for the initial offering. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a threat to the business's long term existence, however the situation 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 avoid the danger of failure for entrance in the brand-new markets.
