Superior Manufacturing Co 3 Case Study Solution and Analysis
Introduction
Superior Manufacturing Co 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting information, processing info and interaction services. Significant service segments of the business include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports etc. Superior Manufacturing Co 3 Case Study Help has actually become a specialized information supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Superior Manufacturing Co 3 Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Superior Manufacturing Co 3 Case Study Analysis has particular strengths that can be made use of to lower the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Superior Manufacturing Co 3 Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position allows the company to consider numerous development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Superior Manufacturing Co 3 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Superior Manufacturing Co 3 Case Study Analysis also, however the growth might be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed certain threats to Superior Manufacturing Co 3 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Superior Manufacturing Co 3 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the annual overall earnings of Superior Manufacturing Co 3 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the company is rather effective in drawing in a large number of consumers at a prospective rate.
Together with it, the second graph which reveals the yearly growth in the Superior Manufacturing Co 3 Case Study Help overall assets, shows that the company is rather efficient in including worth to its properties through its profits. The growth in possessions shows that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the distribution of overall profits of the company. Major 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 business segments with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Superior Manufacturing Co 3 Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful materials and so on. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Superior Manufacturing Co 3 Case Study Solution. However, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Superior Manufacturing Co 3 Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 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 Five Forces Design could be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the documents provided in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Superior Manufacturing Co 3 Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest 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 market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Superior Manufacturing Co 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an immediate service to avoid the decreasing market growth. The business could also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data associated with the consumer need, the possible markets, the government regulations and the information connected to the competitors provided in the market. After that, the company should choose one possible segment for its initial offering. It must collect research study that how it might separate its digital publishing from the existing rivals' products. The actions above the business need to go for the initial offering. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a danger to the business's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
