To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution and Analysis
Intro
To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution has certain strengths that can be utilized to decrease the risks, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its consumers.
• Strong financial position enables the business to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its advancement program. The weak points of To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Analysis as well, but the growth might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has positioned specific risks to To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly total incomes of To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a large number of clients at a possible rate.
Along with it, the 2nd graph which reveals the yearly growth in the To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Analysis total possessions, reveals that the company is rather effective in including worth to its possessions through its revenues. The development in properties reveals that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the distribution of overall incomes of the business. 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 service sectors with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the general organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable 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 Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the virtual libraries on certain sites. The changing customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as To Condemn Or Not To Condemn Why Bad Behaviour Doesnt Always Damage Reputation Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect 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 present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments 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 company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company require an instant service to prevent the declining industry growth. For that reason, introduction of digital publishing could show to be an instant solution with low quantity of threat for the company. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the customer need, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a danger to the company's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the new markets.
