The Power Of One The Strategy Diamond Framework Case Study Solution and Analysis
Introduction
The Power Of One The Strategy Diamond Framework Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and communication services. Major business sections of the company consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. The Power Of One The Strategy Diamond Framework Case Study Solution has actually become a specialized information service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and The Power Of One The Strategy Diamond Framework Case Study Help in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
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 situation? Do the long important experience, technical resources and the abilities of the business could be made use of 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 Power Of One The Strategy Diamond Framework Case Study Analysis has specific strengths that can be utilized to minimize the dangers, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of The Power Of One The Strategy Diamond Framework Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of The Power Of One The Strategy Diamond Framework Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting The Power Of One The Strategy Diamond Framework Case Study Analysis too, but the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing market has actually presented specific risks to The Power Of One The Strategy Diamond Framework Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of The Power Of One The Strategy Diamond Framework Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. The overall financial efficiency of the company could be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall 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 Power Of One The Strategy Diamond Framework Case Study Analysis is growing and the business is quite effective in bring in a a great deal of consumers at a potential price.
Along with it, the 2nd chart which reveals the annual development in the The Power Of One The Strategy Diamond Framework Case Study Analysis total assets, reveals that the business is quite effective in including worth to its possessions through its profits. The development in properties reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the distribution of total incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact 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 Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting The Power Of One The Strategy Diamond Framework Case Study Analysis business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the The Power Of One The Strategy Diamond Framework Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books affect the total service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the The Power Of One The Strategy Diamond Framework Case Study Solution. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Power Of One The Strategy Diamond Framework Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Power Of One The Strategy Diamond Framework Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Power Of One The Strategy Diamond Framework Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate option to prevent the decreasing industry development. Therefore, intro of digital publishing could show to be an instant option with low quantity of risk for the company. However, the company might also consider 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 information related to the customer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 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 introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.
