The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution and Analysis
Introduction
The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation 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 important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Analysis has specific strengths that can be utilized to reduce the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to think about numerous advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Analysis are given as follows;
• Despite of being a science and technology 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 ought to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution as well, but the development might be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has postured particular hazards to The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be computed. The overall monetary performance of the business might be examined by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution is growing and the business is rather efficient in bring in a large number of clients at a potential cost.
Together with it, the 2nd graph which shows the annual growth in the The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Help overall properties, shows that the company is quite efficient in including worth to its possessions through its revenues. The growth in possessions shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis concerning the distribution of overall revenues of the business. Major 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 company might move towards other business segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Help organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry 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 rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution include the suppliers of the paper for publishing 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 Purchaser.
Haggling 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 marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Innocar Project Developing A Chip For The Future Automobile B Episode 1 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 organisation segments to the brand-new one can lead the company to lose demand of its items 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 recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the declining industry development. Introduction of digital publishing might show to be an instant option with low quantity of risk for the company. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially collects the data related to the consumer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a danger to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.
