Strong Tie Ltd 3 Case Study Solution and Analysis
Introduction
Strong Tie Ltd 3 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Strong Tie Ltd 3 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change 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 capabilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Strong Tie Ltd 3 Case Study Solution has specific strengths that can be made use of to minimize the risks, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Strong Tie Ltd 3 Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong monetary position enables the business to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase restraints for the company in executing its development program. The weaknesses of Strong Tie Ltd 3 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, affecting Strong Tie Ltd 3 Case Study Help as well, but the development might be restored by availing certain chances presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has positioned certain hazards to Strong Tie Ltd 3 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Strong Tie Ltd 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the overall financial efficiency of the business might be examined by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Strong Tie Ltd 3 Case Study Solution is growing and the company is quite efficient in attracting a a great deal of clients at a potential price.
Along with it, the 2nd graph which reveals the annual growth in the Strong Tie Ltd 3 Case Study Help total assets, reveals that the business is rather efficient in including worth to its assets through its profits. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis relating to the circulation of total revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the company and the recent trends 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 might have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Strong Tie Ltd 3 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative products etc. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Strong Tie Ltd 3 Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Strong Tie Ltd 3 Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition 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 participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Strong Tie Ltd 3 Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general 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 a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Strong Tie Ltd 3 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 3rd and second in various market sectors, with a major concentrate on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Strong Tie Ltd 3 Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Strong Tie Ltd 3 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly 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 Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market development. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must first gathers the data related to the customer demand, the potential markets, the government regulations and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 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 presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.
