Suntech Power 2 Case Study Solution and Analysis
Intro
Suntech Power 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and interaction services. Major business segments of the business consist of; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Suntech Power 2 Case Study Analysis has ended up being a specialized info provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Suntech Power 2 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities of the business 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
Suntech Power 2 Case Study Analysis has certain strengths that can be made use of to reduce the threats, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Suntech Power 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong financial position allows the company to think about a number of development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase constraints for the company in implementing its advancement program. The weak points of Suntech Power 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, impacting Suntech Power 2 Case Study Solution as well, but the development could be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has positioned certain threats to Suntech Power 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Suntech Power 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall profits of Suntech Power 2 Case Study Analysis during the period 2000-2012 are growing at a high growth 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 possible rate.
Along with it, the second chart which reveals the annual growth in the Suntech Power 2 Case Study Analysis overall properties, shows that the company is rather effective in including worth to its properties through its earnings. The growth in possessions shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the circulation of total earnings of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided 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, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic 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 total GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of customers of the Suntech Power 2 Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Suntech Power 2 Case Study Help consists of the concerns of ecological neighborhoods 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents presented in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Suntech Power 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Suntech Power 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Suntech Power 2 Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate service to prevent the decreasing market development. Therefore, introduction of digital publishing could prove to be an instant option with low quantity of risk for the business. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first gathers the data connected to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. After that, the company ought to choose one potential section for its preliminary offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business should choose the preliminary offering. The company ought to go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term presence, however the scenario can be controlled by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
