The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution and Analysis
Intro
The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing info and interaction services. Major organisation sections of the business include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution has actually ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis has specific strengths that can be made use of to minimize the risks, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position permits the company to consider a number of development chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase restrictions for the company in executing its advancement program. The weak points of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods 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 strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution also, but the growth might be revived by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has presented particular risks to The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total profits of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in attracting a big number of customers at a prospective cost.
Along with it, the 2nd graph which shows the annual growth in the The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Help overall possessions, reveals that the business is quite effective in adding value to its assets through its revenues. The growth in assets reveals that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis relating to the circulation of overall earnings of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies connected to the import of books affect the total organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract brand-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 Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market segments, with a significant concentrate on educational publications. CIP serves 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 might wean the market share of The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as The Acquisition And Restructuring Of Kia Motors By Hyundai Motors 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible 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 utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competition 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 company to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an instant option to prevent the decreasing industry growth. The company could also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer demand, the prospective markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the business should choose one potential segment for its preliminary offering. It needs to collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the company should go for the preliminary offering. If the preliminary offering proves a success, the business should opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a danger to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
