Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Solution and Analysis
Introduction
Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing information and communication services. Major business sections of the business consist of; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis has become a specialized details service provider and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of 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
Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help has certain strengths that can be made use of to decrease the dangers, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position permits the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase constraints for the business in executing its development program. The weak points of Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, affecting Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis as well, however the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular threats to Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual overall profits of Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a big number of customers at a possible cost.
In addition to it, the second graph which reveals the yearly growth in the Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis total assets, shows that the business is quite efficient in including value to its assets through its earnings. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the distribution of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The 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 Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the general service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials and so on. China has the highest population worldwide with a high population growth, showing the increasing number of customers of the Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help. However, the consumer choices are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed 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. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Analysis consist of 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market 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 documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Three Trends That Will Change How You Manage Globalization Digitization And Politicization 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant service to avoid the decreasing industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information associated with the customer need, the potential markets, the government guidelines and the information associated with the competitors provided in the market. After that, the business should decide one prospective segment for its preliminary offering. It ought to collect research that how it might differentiate its digital publishing from the existing rivals' items. The steps above the company ought to go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a threat to the business's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
