Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution and Analysis
Intro
Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing details and communication services. Significant company sectors of the company consist of; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major products include books, periodicals, online media, exhibitions, research reports and so on. Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Analysis has actually ended up being a specialized information company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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 company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help has certain strengths that can be made use of 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 On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase constraints for the business in executing its advancement program. The weak points of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining given that 2008, affecting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution as well, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular risks to Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly total revenues of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of consumers at a possible price.
In addition to it, the 2nd graph which reveals the annual development in the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help total properties, shows that the company is quite effective in adding value to its assets through its profits. The development in assets shows that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the circulation of overall revenues of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the company and the current 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 impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces impacting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
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 total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help includes the issues of environmental communities over the use 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal 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 also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a big period, CIP held the biggest market share, and still ranks second and 3rd in numerous market segments, with a significant concentrate on educational publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part A 2 Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• 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 danger of Failure.
• Low requirement for funds.
• Increased item 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 business segments to the brand-new one can lead the business 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 market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant option to avoid the declining industry growth. Intro of digital publishing might show to be an instant service with low amount of risk for the company. 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 product portfolio, the company must initially gathers the data related to the consumer demand, the possible markets, the government regulations and the data associated with the competitors presented in the market. After that, the company must decide one potential sector for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the business ought to choose the initial offering. The business needs to go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, revealing a hazard to the company's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
