What Is Your Strategy Case Study Solution and Analysis
Introduction
What Is Your Strategy Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, What Is Your Strategy Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several concerns 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 strive for 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 Your Strategy Case Study Analysis has certain strengths that can be made use of to reduce the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of What Is Your Strategy Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the business to consider a number of advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of What Is Your Strategy Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, affecting What Is Your Strategy Case Study Solution as well, however the development might be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has presented certain hazards to What Is Your Strategy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of What Is Your Strategy Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. The total financial performance of the company might be examined by utilizing the graphs offered in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of What Is Your Strategy Case Study Analysis is growing and the company is rather effective in attracting a a great deal of consumers at a prospective price.
In addition to it, the second graph which shows the yearly growth in the What Is Your Strategy Case Study Solution total properties, shows that the company is quite efficient in including worth to its assets through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given information could be the analysis concerning the distribution of overall profits of the company. Major part of the profits 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 organisation segments with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces affecting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces impacting What Is Your Strategy Case Study Analysis business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings 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.
Social and Demographical.
The customer preferences 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 altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting What Is Your Strategy Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the digital libraries on particular websites. The altering customer choices towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the What Is Your Strategy Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of What Is Your Strategy Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in different market sections, with a major focus on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of What Is Your Strategy Case Study Help easily in the present market scenario.
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 service scale. It is likewise among the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing industry growth. Therefore, introduction of digital publishing could prove to be an instant option with low quantity of danger for the company. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the data associated with the customer demand, the possible markets, the government policies and the information connected to the rivals presented in the market. After that, the company should choose one possible section for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' products. The actions above the company must go for the preliminary offering. If the preliminary offering shows a success, the business must opt for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining because 2008, showing a danger to the business's long term existence, but the scenario can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
