The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution and Analysis
Intro
The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in general and CMP 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 strategies
• Enhancement of science and innovation.
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 situation? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution has specific strengths that can be utilized to decrease the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to think about several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business 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 must propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution too, however the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed certain dangers to The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Analysis due to the customer 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 rivals can gain a strong consumer base by using certain strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. The general financial performance of the company could be examined by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution is growing and the business is quite effective in drawing in a large number of clients at a potential cost.
Along with it, the second graph which shows the annual growth in the The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Help overall possessions, reveals that the company is quite effective in including worth to its assets through its profits. The growth in properties reveals that the total value of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis relating to the circulation of total incomes of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the performance of the business 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 could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative materials etc. China has the highest population on the planet with a high population development, showing the increasing number of customers of the The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Help consists of the issues 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 hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sectors, with a major concentrate on instructional publications. CIP serves as a hazard 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 The Ritz Carlton Hotel Company The Quest For Service Excellence Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining industry development. The company could likewise 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 must initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, showing a danger to the company's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
