Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Solution and Analysis
Intro
Too Much Of A Good Thing Quality As An Impediment To Innovation 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. Significant service segments of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items consist of books, regulars, online media, exhibits, research reports etc. Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Analysis has actually become a specialized details provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Solution has specific strengths that can be used to decrease the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position permits the business to think about several development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase constraints for the business in executing its development program. The weak points of Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Solution as well, however the growth might be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular hazards to Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the market together with existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual total incomes of Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is quite efficient in attracting a large number of customers at a possible cost.
In addition to it, the 2nd chart which shows the annual development in the Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help total possessions, reveals that the company is quite effective in including worth to its properties through its profits. The growth in possessions reveals that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the given data might be the analysis relating to the distribution of overall incomes of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of customers of the Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Analysis includes the concerns of environmental 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 must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on certain websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Too Much Of A Good Thing Quality As An Impediment To Innovation 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the declining market growth. Introduction of digital publishing could show to be an instant option with low amount of risk for the business. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the data related to the customer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
