The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution and Analysis
Introduction
The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Problems
Although, The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 abilities of the business could be utilized 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 Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution has specific strengths that can be used to minimize the hazards, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong financial position enables the business to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase constraints for the company in executing its advancement program. The weaknesses of The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis as well, but the development could be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually positioned specific threats to The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis due to the customer shift towards digital 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 acquire a strong consumer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the company might be examined by using the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis is growing and the business is quite effective in bring in a large number of consumers at a possible cost.
In addition to it, the 2nd graph which shows the yearly development in the The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Analysis total assets, shows that the company is rather efficient in adding value to its possessions through its profits. The development in possessions reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the distribution of overall profits of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on instructional publications. CIP serves as a risk 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 Circle Chart A Negotiation Framework For Problem Solving In Tough Communication Environments 2 Case Study Solution quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus 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 products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company need an instant service to avoid the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant service with low quantity of risk for the company. However, the business might also think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information related to the consumer demand, the possible markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a hazard to the company's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
