The Age Of The Inauthentic Executive Case Study Solution and Analysis
Introduction
The Age Of The Inauthentic Executive Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, The Age Of The Inauthentic Executive Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 capabilities of the company could be used 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
The Age Of The Inauthentic Executive Case Study Help has particular strengths that can be made use of to minimize the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Age Of The Inauthentic Executive Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the company to think about numerous development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its development program. The weak points of The Age Of The Inauthentic Executive Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting The Age Of The Inauthentic Executive Case Study Solution also, however the development might be revived by availing certain chances presented in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed specific threats to The Age Of The Inauthentic Executive Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Age Of The Inauthentic Executive Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be determined. The overall monetary performance of the company could be analyzed by using the graphs offered in the case Appendices. It might be examined from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of The Age Of The Inauthentic Executive Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of customers at a possible price.
In addition to it, the 2nd chart which reveals the yearly development in the The Age Of The Inauthentic Executive Case Study Analysis total assets, shows that the company is quite efficient in adding value to its assets through its revenues. The growth in possessions shows that the total value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the distribution of total earnings of the business. Huge 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 could move towards other organisation sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces impacting the efficiency of the company and the current trends 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 might have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting The Age Of The Inauthentic Executive Case Study Help organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the The Age Of The Inauthentic Executive Case Study Solution in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies associated with the import of books impact the general organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading helpful materials etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the The Age Of The Inauthentic Executive Case Study Solution. However, the customer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting The Age Of The Inauthentic Executive Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable 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 regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Age Of The Inauthentic Executive Case Study Analysis include the providers of the paper for publishing 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.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Age Of The Inauthentic Executive Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks second and third in different market sections, with a significant focus on educational publications. CIP functions as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of The Age Of The Inauthentic Executive Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as The Age Of The Inauthentic Executive Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate option to avoid the declining market development. For that reason, intro of digital publishing might prove to be an instant service with low quantity of threat for the business. However, the company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to first gathers the information related to the customer need, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a danger to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business could think about presenting 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.
