The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution and Analysis
Intro
The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing information and interaction services. Significant service sections of the company include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its major items include books, periodicals, online media, exhibitions, research reports and so on. The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution has actually ended up being a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities 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 Posse Foundation Implementing A Growth Strategy 2 Case Study Solution has specific strengths that can be made use of to decrease the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Posse Foundation Implementing A Growth Strategy 2 Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to think about numerous development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase constraints for the company in implementing its advancement program. The weak points of The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, affecting The Posse Foundation Implementing A Growth Strategy 2 Case Study Help as well, but the development might be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain hazards to The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. The general financial performance of the business might be examined by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis is growing and the business is quite efficient in attracting a large number of customers at a possible rate.
Together with it, the second chart which reveals the annual growth in the The Posse Foundation Implementing A Growth Strategy 2 Case Study Help overall properties, reveals that the business is rather efficient in adding value to its properties through its profits. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the provided data could be the analysis relating to the circulation 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 displayed in the Case Appendix V. The business could move towards other business sectors with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting The Posse Foundation Implementing A Growth Strategy 2 Case Study Analysis includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A quick 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 growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution include the suppliers 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.
Negotiating power of buyer 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 needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Posse Foundation Implementing A Growth Strategy 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a major concentrate on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Posse Foundation Implementing A Growth Strategy 2 Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as The Posse Foundation Implementing A Growth Strategy 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect 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: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
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 business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing market development. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to initially collects the data associated with the customer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. After that, the business should decide one potential section for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing competitors' products. The steps above the company need to go for the preliminary offering. If the initial offering shows a success, the business ought to opt for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
