What Is Your Strategy 2 Case Study Solution and Analysis
Introduction
What Is Your Strategy 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, What Is Your Strategy 2 Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 abilities of the business could be utilized 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
What Is Your Strategy 2 Case Study Solution has specific strengths that can be used to lower the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of What Is Your Strategy 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position enables the company to consider several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restraints for the company in implementing its development program. The weak points of What Is Your Strategy 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting What Is Your Strategy 2 Case Study Analysis as well, however the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has postured specific risks to What Is Your Strategy 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of What Is Your Strategy 2 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be determined. However, the total monetary efficiency of the company might be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of What Is Your Strategy 2 Case Study Help is growing and the business is quite efficient in attracting a large number of customers at a prospective cost.
In addition to it, the second graph which shows the annual growth in the What Is Your Strategy 2 Case Study Help overall possessions, reveals that the business is quite effective in adding worth to its assets through its incomes. The development in properties shows that the overall value of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis regarding the circulation of overall profits of the company. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset 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 might be said that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the What Is Your Strategy 2 Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. Along with it, the financial policies connected to the import of books impact the total business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology along with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting What Is Your Strategy 2 Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the virtual libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market 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 competition for CMP. Together with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the What Is Your Strategy 2 Case Study Help consist of the providers of the paper for publishing 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.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of What Is Your Strategy 2 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 very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and second in numerous market segments, with a significant concentrate on academic publications. CIP acts 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 might wean the market share of What Is Your Strategy 2 Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate service to prevent the decreasing industry development. Introduction of digital publishing could prove to be an instant service with low quantity of risk for the company. The company might also 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 ought to first gathers the data associated with the customer demand, the prospective markets, the government regulations and the data related to the rivals provided in the market. After that, the company must choose one potential section for its initial offering. It ought to collect research that how it could separate its digital publishing from the existing rivals' items. The steps above the business ought to go for the preliminary offering. If the preliminary offering proves a success, the business should choose the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
