Striker Corporation Case Study Solution and Analysis
Intro
Striker Corporation 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 consisting of; collecting info, processing details and communication services. Major company sectors of the business consist of; books, regulars, consultancy and circulation. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Striker Corporation Case Study Help has actually become a specialized details service provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Striker Corporation Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of 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 made use of 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
Striker Corporation Case Study Analysis has particular strengths that can be utilized to minimize the dangers, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Striker Corporation Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position permits the company to think about several advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Striker Corporation Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Striker Corporation Case Study Analysis as well, however the growth might be restored by availing particular chances presented 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 customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has actually presented particular threats to Striker Corporation Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Striker Corporation Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain methods like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total profits of Striker Corporation Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a big number of consumers at a possible cost.
Together with it, the 2nd graph which shows the yearly development in the Striker Corporation Case Study Analysis overall properties, reveals that the company is rather effective in adding value to its possessions through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information might be the analysis regarding the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the 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 said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Striker Corporation Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology in addition to the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Striker Corporation Case Study Analysis consists of the issues 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 utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers 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 also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Striker Corporation Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence 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. Significant competitors of Striker Corporation Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and third in numerous market sectors, with a significant concentrate on instructional publications. CIP acts as a hazard 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 market share of Striker Corporation Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an instant service to prevent the declining industry development. Introduction of digital publishing could prove to be an immediate option with low amount of risk for the company. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the customer demand, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
