The Age Of The Inauthentic Executive Case Study Solution and Analysis
Intro
The Age Of The Inauthentic Executive Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing information and communication services. Major company segments of the business include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research reports etc. The Age Of The Inauthentic Executive Case Study Help has actually become a specialized information supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, The Age Of The Inauthentic Executive Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Age Of The Inauthentic Executive Case Study Solution has certain strengths that can be utilized to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Age Of The Inauthentic Executive Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the company to think about several advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weaknesses of The Age Of The Inauthentic Executive Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting The Age Of The Inauthentic Executive Case Study Help also, but the growth might be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has presented particular dangers to The Age Of The Inauthentic Executive Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Age Of The Inauthentic Executive Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. The overall monetary efficiency of the company might be examined by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Age Of The Inauthentic Executive Case Study Analysis is growing and the business is quite effective in attracting a large number of customers at a potential price.
In addition to it, the second graph which reveals the annual development in the The Age Of The Inauthentic Executive Case Study Solution total assets, reveals that the company is rather efficient in including worth to its possessions through its profits. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis regarding the distribution of total earnings of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces affecting The Age Of The Inauthentic Executive Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the The Age Of The Inauthentic Executive Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies connected to 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 development, the consumer's choices towards reading helpful materials etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the The Age Of The Inauthentic Executive Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Age Of The Inauthentic Executive Case Study Solution 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 utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Age Of The Inauthentic Executive Case Study Help include the suppliers of the paper for releasing documents. 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.
Bargaining power of buyer 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 buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Age Of The Inauthentic Executive Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company need an instant service to prevent the declining industry development. 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 product portfolio, the company needs to first gathers the information connected to the consumer demand, the possible markets, the government regulations and the information associated with the competitors provided in the market. After that, the business should decide one potential segment for its initial offering. It ought to gather research that how it could distinguish its digital publishing from the existing competitors' products. The actions above the company should go for the initial offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining since 2008, showing a risk to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
