Striker Corporation Case Study Solution and Analysis
Striker Corporation Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Striker Corporation Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Striker Corporation Case Study Solution has particular strengths that can be utilized to lower the threats, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Striker Corporation Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position permits the company to think about a number of development opportunities with no worry of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restrictions for the business in executing its development program. The weaknesses of Striker Corporation Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely 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 development.
Although, the development of the publishing industry is decreasing because 2008, affecting Striker Corporation Case Study Solution as well, however the development might be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured certain hazards to Striker Corporation Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Striker Corporation Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the threat of losing the client base.
Due to absence of information, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual total incomes of Striker Corporation Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is quite efficient in bring in a large number of consumers at a prospective price.
Along with it, the second graph which reveals the yearly growth in the Striker Corporation Case Study Solution total possessions, reveals that the business is rather efficient in including worth to its properties through its incomes. The development in assets shows that the overall worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis regarding the circulation of total revenues of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a prospective development to attain its future development goal.
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Striker Corporation Case Study Help business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental forces impacting Striker Corporation Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. However, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Striker Corporation Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Striker Corporation Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a major focus on instructional publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Striker Corporation Case Study Help quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established 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 players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the declining industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business needs to first gathers the information related to the consumer demand, the potential markets, the federal government policies and the data connected to the rivals presented in the market. After that, the business must decide one prospective segment for its preliminary offering. It must collect research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business ought to go for the initial offering. If the preliminary offering proves a success, the company must choose the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the new markets.