Sun Microsystems 2 Case Study Solution and Analysis
Introduction
Sun Microsystems 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; collecting details, processing details and communication services. Significant business segments of the company include; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major items consist of books, regulars, online media, exhibits, research study reports and so on. Sun Microsystems 2 Case Study Solution has become a specialized details provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and Sun Microsystems 2 Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sun Microsystems 2 Case Study Solution has particular strengths that can be made use of to reduce the dangers, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Sun Microsystems 2 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the business in implementing its development program. The weak points of Sun Microsystems 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Sun Microsystems 2 Case Study Analysis as well, however the development could be restored by availing specific chances presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific dangers to Sun Microsystems 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Sun Microsystems 2 Case Study Analysis due to the customer shift towards digital 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 rivals can acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual total revenues of Sun Microsystems 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in bring in a big number of consumers at a potential price.
Along with it, the 2nd chart which reveals the annual growth in the Sun Microsystems 2 Case Study Analysis overall assets, shows that the business is quite efficient in adding value to its assets through its earnings. The development in possessions reveals that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis concerning the distribution of total earnings of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces impacting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces affecting Sun Microsystems 2 Case Study Analysis company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Sun Microsystems 2 Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies 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 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 utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents provided in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the hazard of alternative 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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Sun Microsystems 2 Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Sun Microsystems 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP publishes comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sections, with a major focus on instructional 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 might wean the market share of Sun Microsystems 2 Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Sun Microsystems 2 Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service 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 internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. Intro of digital publishing might show to be an immediate solution with low amount of danger for the company. However, the company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information associated with the consumer need, the prospective markets, the federal government policies and the data related to the rivals presented in the market. After that, the company must decide one possible segment for its initial offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the company must choose the initial offering. If the initial offering shows a success, the business should go for the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
