The Story Of Samsung Case Study Solution and Analysis
Introduction
The Story Of Samsung Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, The Story Of Samsung Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing companies 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Story Of Samsung Case Study Help has particular strengths that can be made use of to reduce the hazards, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Story Of Samsung Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position enables the company to consider numerous development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its development program. The weak points of The Story Of Samsung 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 suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining because 2008, affecting The Story Of Samsung Case Study Help as well, but the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its vast funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to The Story Of Samsung Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of The Story Of Samsung Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the total financial performance of the business might be analyzed by utilizing the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of The Story Of Samsung Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a possible rate.
Together with it, the 2nd chart which reveals the annual growth in the The Story Of Samsung Case Study Analysis total properties, reveals that the business is quite effective in adding value to its possessions through its revenues. The development in possessions reveals that the total value of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the circulation of total incomes of the company. Major part of the profits 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 sections with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting The Story Of Samsung Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the The Story Of Samsung Case Study Analysis in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful products etc. China has the greatest population worldwide with a high population development, showing the increasing variety of customers of the The Story Of Samsung Case Study Solution. However, the customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting The Story Of Samsung Case Study Analysis includes 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 disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing market. 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 Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Story Of Samsung Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Story Of Samsung Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the declining market growth. The company could also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the information related to the consumer demand, the potential markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term presence, however the scenario can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
