Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution and Analysis
Introduction
Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and communication services. Major service sections of the company include; books, regulars, consultancy and circulation. The business has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports and so on. Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Analysis has become a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Analysis has certain strengths that can be used to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its customers.
• Strong financial position permits the business to consider numerous development chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution are given 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 highly relies over the Chinese markets for its development. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing given that 2008, affecting Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution as well, however the development could be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured specific dangers to Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution due to the consumer shift towards digital 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 acquire a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. The overall monetary efficiency of the company could be analyzed by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Help is growing and the company is quite effective in attracting a large number of consumers at a possible cost.
Along with it, the 2nd graph which reveals the yearly development in the Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Help overall properties, reveals that the company is rather effective in adding worth to its properties through its profits. The growth in properties reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis relating to the circulation of overall earnings of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Help service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of customers of the Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the files presented in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Solution include the providers of the paper for publishing files. As CMP is the biggest 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 purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market sectors, with a significant focus on instructional publications. CIP serves 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 marketplace share of Volkswagen Do Brasil Case Supplement Employee Recognition Awards Ceremony Video 2 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 business scale. It is likewise among the prominent players 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 Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value 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 brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining market growth. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to initially collects the information associated with the consumer need, the prospective markets, the government policies and the data related to the competitors provided in the market. After that, the business needs to decide one potential segment for its preliminary offering. It needs to collect research study that how it could separate its digital publishing from the existing competitors' products. After all the steps above the company should choose the preliminary offering. The business should go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a hazard to the company's long term existence, but the scenario can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
