Sturdivant Electric Corporation 2 Case Study Solution and Analysis
Introduction
Sturdivant Electric Corporation 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Sturdivant Electric Corporation 2 Case Study Analysis in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the business 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
Sturdivant Electric Corporation 2 Case Study Analysis has certain strengths that can be utilized to lower the hazards, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sturdivant Electric Corporation 2 Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position permits the company to think about several development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weak points which might increase restraints for the business in implementing its development program. The weak points of Sturdivant Electric Corporation 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Sturdivant Electric Corporation 2 Case Study Help too, however the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Risks
The changing macro trends in the market and increasing competition in the publishing market has actually postured particular threats to Sturdivant Electric Corporation 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Sturdivant Electric Corporation 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total incomes of Sturdivant Electric Corporation 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a potential price.
In addition to it, the 2nd chart which reveals the annual development in the Sturdivant Electric Corporation 2 Case Study Help total properties, reveals that the business is quite efficient in adding value to its assets through its incomes. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the circulation of total profits of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the efficiency of the company and the current patterns 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 significant effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Sturdivant Electric Corporation 2 Case Study Analysis business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Sturdivant Electric Corporation 2 Case Study Analysis consists of the concerns 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 used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the documents provided in the digital libraries on particular sites. The changing consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Sturdivant Electric Corporation 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Sturdivant Electric Corporation 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Sturdivant Electric Corporation 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining market growth. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer need, the prospective markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The company might think about introducing 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.
