What Is Strategic Management 2 Case Study Solution and Analysis
Introduction
What Is Strategic Management 2 Case Study Help 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 details, processing details and communication services. Major company sectors of the company include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports and so on. What Is Strategic Management 2 Case Study Solution has become a specialized info service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, What Is Strategic Management 2 Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
What Is Strategic Management 2 Case Study Solution has particular strengths that can be utilized to reduce the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of What Is Strategic Management 2 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the company to think about a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of What Is Strategic Management 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting What Is Strategic Management 2 Case Study Help as well, however the growth might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing market has postured particular dangers to What Is Strategic Management 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of What Is Strategic Management 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number 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 particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total profits of What Is Strategic Management 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a large number of clients at a possible rate.
In addition to it, the 2nd chart which shows the yearly growth in the What Is Strategic Management 2 Case Study Analysis total properties, reveals that the business is quite effective in including value to its properties through its revenues. The growth in properties shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of overall revenues of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sectors with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided 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 government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. It might be said that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting What Is Strategic Management 2 Case Study Help consists of the issues of environmental neighborhoods 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 used 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 approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files presented in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the danger of substitution for the market.
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 etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the What Is Strategic Management 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of What Is Strategic Management 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on instructional publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of What Is Strategic Management 2 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as What Is Strategic Management 2 Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual 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 chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 service sections to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market development. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company must initially collects the information connected to the customer need, the potential markets, the government regulations and the information associated with the rivals presented in the market. After that, the company needs to choose one prospective section for its preliminary offering. It should gather research study that how it might separate its digital publishing from the existing rivals' items. After all the steps above the business ought to go for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a danger to the company's long term presence, but the situation can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
