The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution and Analysis
Introduction
The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help has specific strengths that can be made use of to decrease the hazards, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong monetary position allows the business to think about a number of development opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, impacting The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis as well, however the development might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has postured specific threats to The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total incomes of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in drawing in a big number of customers at a prospective price.
Along with it, the 2nd graph which shows the annual growth in the The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help total properties, shows that the company is quite effective in adding value to its properties through its incomes. The development in assets reveals that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis concerning the distribution of overall incomes of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading useful products etc. China has the greatest population in the world with a high population development, revealing the increasing variety of customers of the The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis consist of the providers of the paper for releasing files. 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution include;.
• Chemical Industry 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden 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 market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing industry development. For that reason, introduction of digital publishing might prove to be an instant service with low amount of risk for the business. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must first collects the information connected to the customer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. After that, the business must choose one prospective section for its preliminary offering. It ought to collect research study that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business need to go for the preliminary offering. If the preliminary offering proves a success, the business needs to go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a threat to the business's long term presence, but the situation can be controlled by considering an advancement plan in the future. The business might 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.
