The World Economic Forums Global Leadership Fellows Program Case Study Solution and Analysis
Introduction
The World Economic Forums Global Leadership Fellows Program Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing market in general and The World Economic Forums Global Leadership Fellows Program Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The World Economic Forums Global Leadership Fellows Program Case Study Analysis has particular strengths that can be used to lower the hazards, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of The World Economic Forums Global Leadership Fellows Program Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong monetary position enables the company to think about a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of The World Economic Forums Global Leadership Fellows Program Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting The World Economic Forums Global Leadership Fellows Program Case Study Solution too, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• 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 an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has actually posed certain hazards to The World Economic Forums Global Leadership Fellows Program Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The World Economic Forums Global Leadership Fellows Program Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be computed. The total financial performance of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of The World Economic Forums Global Leadership Fellows Program Case Study Solution is growing and the business is quite effective in drawing in a large number of customers at a possible price.
Together with it, the 2nd graph which shows the annual development in the The World Economic Forums Global Leadership Fellows Program Case Study Solution total possessions, reveals that the business is rather effective in including worth to its assets through its revenues. The development in possessions shows that the total value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis regarding the distribution of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the The World Economic Forums Global Leadership Fellows Program Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth 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 company at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation together with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The World Economic Forums Global Leadership Fellows Program 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 required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the virtual libraries on particular websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
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. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The World Economic Forums Global Leadership Fellows Program Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The World Economic Forums Global Leadership Fellows Program Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as The World Economic Forums Global Leadership Fellows Program Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company require an immediate option to avoid the declining market growth. For that reason, introduction of digital publishing could show to be an immediate service with low quantity of danger for the business. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
