What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Solution and Analysis
Intro
What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing info and interaction services. Significant company segments of the company consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research reports and so on. What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis has become a specialized information company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining 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 several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized 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
What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis has certain strengths that can be made use of to lower the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the company to think about numerous development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Help as well, however the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has positioned particular risks to What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be determined. The general monetary efficiency of the company might be analyzed by using the charts offered in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a prospective rate.
In addition to it, the 2nd chart which reveals the yearly development in the What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Solution total possessions, reveals that the company is rather efficient in including worth to its properties through its revenues. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the circulation of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the general service at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Improvement of science and technology in addition to the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files provided in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry 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 files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as What Do Firms From Transition Economies Want From Their Strategic Alliance Partners Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require 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.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially gathers the information related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
