The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution and Analysis
Intro
The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing details and interaction services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and circulation. The business has a huge product portfolio and its major items include books, regulars, online media, exhibitions, research reports and so on. The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis has actually become a specialized information service provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution in particular. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change 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 company could be made use of 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 Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution has particular strengths that can be made use of to decrease the threats, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position allows the business to think about numerous development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restraints for the business in executing its development program. The weak points of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned certain hazards to The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution due to the customer shift towards virtual 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 get a strong consumer base by using specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall earnings of The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in drawing in a large number of customers at a possible rate.
Together with it, the 2nd chart which reveals the annual development in the The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis total properties, reveals that the company is rather efficient in adding worth to its possessions through its revenues. The development in properties reveals that the overall worth of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis regarding the distribution of total incomes of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards reading useful products etc. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help includes the issues of environmental neighborhoods 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 used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on particular websites. The altering consumer choices towards digital learning increase the risk of replacement for the market.
Competitive Competition.
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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal 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 Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Norwegian Government Pension Fund The Divestiture Of Wal Mart Stores Inc Assignment Questions Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market growth. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first collects the information related to the customer demand, the prospective markets, the government guidelines and the data related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a threat to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
