Taking A Mexican Company Global The Cemex Way Case Study Solution and Analysis
Intro
Taking A Mexican Company Global The Cemex Way Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Taking A Mexican Company Global The Cemex Way Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business 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
Taking A Mexican Company Global The Cemex Way Case Study Analysis has certain strengths that can be utilized to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Taking A Mexican Company Global The Cemex Way Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Taking A Mexican Company Global The Cemex Way Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Taking A Mexican Company Global The Cemex Way Case Study Solution also, but the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has postured particular threats to Taking A Mexican Company Global The Cemex Way Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Taking A Mexican Company Global The Cemex Way Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be determined. The overall financial performance of the company might be evaluated by using the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Taking A Mexican Company Global The Cemex Way Case Study Analysis is growing and the business is quite efficient in attracting a large number of consumers at a potential rate.
Together with it, the second chart which shows the yearly development in the Taking A Mexican Company Global The Cemex Way Case Study Help overall assets, reveals that the business is quite efficient in adding value to its assets through its earnings. The growth in possessions shows that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information could be the analysis relating to the distribution of total revenues of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to learn the different external forces affecting the performance of the company 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 could have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful materials and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the Taking A Mexican Company Global The Cemex Way Case Study Help. The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation 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 Taking A Mexican Company Global The Cemex Way Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents provided in the digital libraries on certain websites. The changing customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Taking A Mexican Company Global The Cemex Way Case Study Help consist of the suppliers of the paper for publishing 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 industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Taking A Mexican Company Global The Cemex Way Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Taking A Mexican Company Global The Cemex Way Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand 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 advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an instant solution to avoid the declining market growth. For that reason, intro of digital publishing might show to be an instant option with low amount of threat for the company. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the information related to the customer need, the potential markets, the government guidelines and the information connected to the competitors provided in the market. After that, the business ought to decide one potential sector for its preliminary offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the business need to opt for the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a hazard to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
