Volkswagen Case Study Solution and Analysis
Intro
Volkswagen Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing information and communication services. Major service segments of the company include; books, periodicals, consultancy and circulation. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibits, research reports etc. Volkswagen Case Study Help has become a specialized details service provider and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Volkswagen Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Volkswagen Case Study Solution has certain strengths that can be utilized to minimize the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Volkswagen Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong monetary position enables the business to consider numerous development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has certain weak points which could increase restraints for the company in executing its development program. The weak points of Volkswagen Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Volkswagen Case Study Solution as well, but the growth might be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific threats to Volkswagen Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Volkswagen Case Study Analysis due to the customer shift towards digital libraries.
• The presence 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 utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual total incomes of Volkswagen Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in bring in a big number of consumers at a possible rate.
In addition to it, the second graph which reveals the yearly development in the Volkswagen Case Study Solution total assets, reveals that the company is quite efficient in including value to its properties through its profits. The growth in possessions shows that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall earnings of the company. Huge 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 company could move towards other business sections with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals 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 could be said that the overall political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Volkswagen Case Study Analysis consists of the concerns 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 used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Volkswagen Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 files at competitive rates.
Rivals Analysis.
CMP operates 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 competitors of Volkswagen Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market sectors, with a significant concentrate on educational publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Volkswagen Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
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 business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining market development. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially gathers the information related to the consumer demand, the prospective markets, the federal government policies and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a threat to the company's long term existence, but the circumstance can be controlled by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
