The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution and Analysis
Introduction
The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in general and The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised a number of 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 business 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 Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution has specific strengths that can be made use of to decrease the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase restraints for the business in executing its advancement program. The weaknesses of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods 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 expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis as well, but the growth could be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned particular dangers to The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence 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 computed. It could be examined from the Appendix III that the annual overall revenues of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather effective in attracting a big number of customers at a prospective price.
Together with it, the second chart which shows the annual development in the The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis total properties, reveals that the business is rather effective in adding worth to its properties through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis relating to the distribution of overall profits of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are quite 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 must focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Entrepreneurial Manager Course Overview 2015 Winter Term 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 should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the virtual libraries on particular websites. The changing customer choices towards digital learning increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Analysis 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 exact same duration, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market segments, with a significant concentrate on instructional publications. CIP serves 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 market share of The Entrepreneurial Manager Course Overview 2015 Winter Term Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing 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 service sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the declining market development. Introduction of digital publishing could show to be an instant option with low amount of danger for the company. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially collects the data related to the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a risk to the company's long term existence, however the situation can be controlled by considering a development strategy in the future. The company 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.
