Understanding Creativity The Manager As Artist Case Study Solution and Analysis
Intro
Understanding Creativity The Manager As Artist Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Understanding Creativity The Manager As Artist Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Understanding Creativity The Manager As Artist Case Study Analysis has certain strengths that can be used to lower the hazards, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Understanding Creativity The Manager As Artist Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position allows the business to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Understanding Creativity The Manager As Artist Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting Understanding Creativity The Manager As Artist Case Study Solution as well, but the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain hazards to Understanding Creativity The Manager As Artist Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Understanding Creativity The Manager As Artist Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry along with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual total earnings of Understanding Creativity The Manager As Artist Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather effective in attracting a large number of clients at a prospective cost.
In addition to it, the 2nd chart which shows the annual growth in the Understanding Creativity The Manager As Artist Case Study Help overall properties, reveals that the company is rather efficient in including value to its possessions through its profits. The development in assets shows that the overall value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the circulation of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind 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 overall political forces affecting CMP business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Understanding Creativity The Manager As Artist Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the overall organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and technology along with the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Understanding Creativity The Manager As Artist Case Study Analysis consists of 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Understanding Creativity The Manager As Artist Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Understanding Creativity The Manager As Artist Case Study Help 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 current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 organisation sectors to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the decreasing market growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should initially gathers the data related to the consumer demand, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, revealing a risk to the company's long term existence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
