The Volkswagen Short Squeeze Case Study Solution and Analysis
Introduction
The Volkswagen Short Squeeze Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier 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 Volkswagen Short Squeeze Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Volkswagen Short Squeeze Case Study Solution has particular strengths that can be utilized to decrease the threats, overcome the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Volkswagen Short Squeeze Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position permits the business to consider several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of The Volkswagen Short Squeeze Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting The Volkswagen Short Squeeze Case Study Analysis as well, however the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has postured certain threats to The Volkswagen Short Squeeze Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of The Volkswagen Short Squeeze Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. Nevertheless, the total monetary efficiency of the business might be examined by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of The Volkswagen Short Squeeze Case Study Analysis is growing and the business is quite efficient in attracting a large number of consumers at a prospective cost.
In addition to it, the 2nd graph which shows the annual development in the The Volkswagen Short Squeeze Case Study Solution overall possessions, reveals that the business is rather efficient in adding value to its possessions through its profits. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the provided information could be the analysis regarding the distribution of total profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the The Volkswagen Short Squeeze Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the The Volkswagen Short Squeeze Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Volkswagen Short Squeeze Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the digital libraries on particular sites. The changing customer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Volkswagen Short Squeeze Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Volkswagen Short Squeeze Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 sectors to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an immediate solution to prevent the declining market development. For that reason, introduction of digital publishing might prove to be an immediate service with low quantity of threat for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the data related to the consumer demand, the potential markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering proves 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 market is declining considering that 2008, showing a risk to the company's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
