Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Solution and Analysis
Introduction
Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous 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 utilized to strive for the future advancement 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 B 2 Case Study Analysis has certain strengths that can be made use of to minimize the risks, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the business to consider numerous development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis are provided 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 highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, affecting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Help as well, however the growth could be restored by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has presented specific risks to Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis due to the customer shift towards virtual 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 get a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. Nevertheless, the total monetary performance of the business might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of consumers at a prospective cost.
Together with it, the 2nd chart which reveals the annual development in the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Solution overall properties, shows that the company is quite effective in including value to its assets through its revenues. The growth in possessions reveals that the overall value of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the circulation of total revenues of the company. Major part of the revenues 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 business sectors with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the company and the recent trends 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 significant impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis 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 general and the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative products and so on. China has the highest population in the world with a high population development, showing the increasing variety of customers of the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest 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 B 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors 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 2nd and 3rd in various market segments, with a significant focus on academic publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Taking On The Challenge Of It Management In A Global Business Context The Alcan Case Part B 2 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing market development. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should initially collects the data associated with the consumer need, the possible markets, the government policies and the data connected to the competitors presented in the market. After that, the company should decide one prospective section for its preliminary offering. It must gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company need to choose the initial offering. The business should go for the other markets if the preliminary offering proves a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term presence, however the circumstance can be managed by considering an advancement plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
