Walter Meier Jet International Expansion Case Study Solution and Analysis
Introduction
Walter Meier Jet International Expansion Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Walter Meier Jet International Expansion Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 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
Walter Meier Jet International Expansion Case Study Solution has specific strengths that can be utilized to decrease the risks, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Walter Meier Jet International Expansion Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position enables the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which could increase restraints for the company in implementing its development program. The weak points of Walter Meier Jet International Expansion Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Walter Meier Jet International Expansion Case Study Help as well, but the growth could be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has actually posed specific threats to Walter Meier Jet International Expansion Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Walter Meier Jet International Expansion Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry together with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP could not be calculated. Nevertheless, the overall monetary efficiency of the business might be analyzed by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Walter Meier Jet International Expansion Case Study Solution is growing and the company is rather effective in bring in a large number of clients at a possible price.
Along with it, the second chart which shows the annual growth in the Walter Meier Jet International Expansion Case Study Solution total assets, shows that the business is quite effective in adding value to its assets through its earnings. The growth in assets shows that the total worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the distribution of total revenues of the company. Huge part of the incomes 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 organisation sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Walter Meier Jet International Expansion Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Walter Meier Jet International Expansion Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Walter Meier Jet International Expansion Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the threat of alternative 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 and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Walter Meier Jet International Expansion Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Walter Meier Jet International Expansion Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market segments, with a significant focus on educational publications. CIP acts as a threat 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 Walter Meier Jet International Expansion Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company require an instant option to prevent the decreasing industry growth. Introduction of digital publishing might show to be an instant solution with low quantity of threat for the business. Nevertheless, the company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should initially collects the data related to the consumer demand, the prospective markets, the government regulations and the data associated with the rivals presented in the market. After that, the business should decide one potential section for its preliminary offering. It should collect research that how it could differentiate its digital publishing from the existing competitors' items. After all the steps above the business ought to opt for the preliminary offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a hazard to the business's long term existence, but the scenario can be managed 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 instant basis and to prevent the threat of failure for entryway in the brand-new markets.
