Strategy Planning Sequence Case Study Solution and Analysis
Intro
Strategy Planning Sequence Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and communication services. Significant business segments of the business consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Strategy Planning Sequence Case Study Help has become a specialized information company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and Strategy Planning Sequence Case Study Analysis in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strategy Planning Sequence Case Study Help has particular strengths that can be used to decrease the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Strategy Planning Sequence Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position allows the business to consider numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Strategy Planning Sequence Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Strategy Planning Sequence Case Study Help as well, however the development could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has actually postured particular threats to Strategy Planning Sequence Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Strategy Planning Sequence Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be determined. Nevertheless, the total financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Strategy Planning Sequence Case Study Solution is growing and the company is rather effective in drawing in a a great deal of clients at a possible rate.
Along with it, the 2nd graph which reveals the annual development in the Strategy Planning Sequence Case Study Solution total assets, reveals that the company is rather effective in adding worth to its possessions through its incomes. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the circulation of overall earnings of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Strategy Planning Sequence Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products etc. China has the greatest population in the world with a high population development, showing the increasing number of customers of the Strategy Planning Sequence Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Strategy Planning Sequence Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Strategy Planning Sequence Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Strategy Planning Sequence Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market sectors, with a significant concentrate on instructional publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Strategy Planning Sequence Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 business segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant option to avoid the decreasing market growth. Intro of digital publishing might show to be an instant option with low amount of risk for the business. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first collects the information related to the consumer need, the prospective markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a hazard to the company's long term existence, but the situation can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
