Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution and Analysis
Intro
Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering info, processing info and interaction services. Significant organisation sectors of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its major items consist of books, regulars, online media, exhibits, research reports and so on. Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis has become a specialized details provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in general and Volkswagen Group Driving Big Business With Big Data 2 Case Study Help in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns 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 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
Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution has certain strengths that can be utilized to reduce the risks, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Volkswagen Group Driving Big Business With Big Data 2 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its clients.
• Strong monetary position permits the company to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase restraints for the company in executing its development program. The weak points of Volkswagen Group Driving Big Business With Big Data 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Volkswagen Group Driving Big Business With Big Data 2 Case Study Help too, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business could also 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 decrease its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular dangers to Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Volkswagen Group Driving Big Business With Big Data 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the annual total revenues of Volkswagen Group Driving Big Business With Big Data 2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite effective in attracting a big number of consumers at a possible cost.
Along with it, the 2nd chart which reveals the annual growth in the Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis overall properties, shows that the business is quite efficient in including worth to its possessions through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of overall revenues of the company. Huge 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 company could move towards other organisation sections with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution service 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 Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the general organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the virtual libraries on certain sites. The altering customer preferences towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Volkswagen Group Driving Big Business With Big Data 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Volkswagen Group Driving Big Business With Big Data 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant focus on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Volkswagen Group Driving Big Business With Big Data 2 Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company need an immediate service to avoid the declining industry growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially collects the data related to the customer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
