Taking A Mexican Company Global The Cemex Way 2 Case Study Solution and Analysis
Introduction
Taking A Mexican Company Global The Cemex Way 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information company and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and Taking A Mexican Company Global The Cemex Way 2 Case Study Solution in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities 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
Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis has particular strengths that can be utilized to reduce the dangers, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Taking A Mexican Company Global The Cemex Way 2 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position permits the company to consider several development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which might increase constraints for the company in implementing its development program. The weaknesses of Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, 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 must propose specific expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis also, but the development could be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has positioned particular risks to Taking A Mexican Company Global The Cemex Way 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market together with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total earnings of Taking A Mexican Company Global The Cemex Way 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a big number of clients at a potential cost.
In addition to it, the second chart which shows the yearly development in the Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis overall possessions, shows that the company is rather effective in including worth to its assets through its revenues. The growth in properties shows that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis regarding the circulation of total profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous 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 Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Taking A Mexican Company Global The Cemex Way 2 Case Study Help include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market segments, with a major focus on academic publications. 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 could wean the market share of Taking A Mexican Company Global The Cemex Way 2 Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible 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 introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining market growth. For that reason, introduction of digital publishing could prove to be an instant service with low quantity of threat for the business. However, the business could also 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 business must first collects the data associated with the consumer need, the prospective markets, the government policies and the information related to the rivals presented in the market. After that, the company ought to decide one potential sector for its preliminary offering. It ought to gather research that how it might separate its digital publishing from the existing rivals' items. After all the steps above the company ought to opt for the initial offering. The business must go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
