Why Managers Still Matter 2 Case Study Solution and Analysis
Intro
Why Managers Still Matter 2 Case Study Help 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 provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Why Managers Still Matter 2 Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry 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.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long important 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
Why Managers Still Matter 2 Case Study Help has particular strengths that can be made use of to reduce the threats, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Why Managers Still Matter 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position allows the business to consider a number of development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which could increase constraints for the company in implementing its development program. The weaknesses of Why Managers Still Matter 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Why Managers Still Matter 2 Case Study Solution as well, however the development might be revived by availing particular opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually postured specific hazards to Why Managers Still Matter 2 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Why Managers Still Matter 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry in addition to presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be calculated. The overall monetary performance of the company might be evaluated by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Why Managers Still Matter 2 Case Study Solution is growing and the business is rather efficient in attracting a large number of consumers at a prospective price.
In addition to it, the 2nd graph which reveals the annual development in the Why Managers Still Matter 2 Case Study Help overall assets, shows that the company is rather efficient in including worth to its possessions through its revenues. The development in properties reveals that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the distribution of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Why Managers Still Matter 2 Case Study Analysis includes the issues of environmental communities 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 utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the virtual libraries on particular sites. The changing consumer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Why Managers Still Matter 2 Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Why Managers Still Matter 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in numerous market segments, with a significant focus on academic publications. CIP acts as a threat 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 marketplace share of Why Managers Still Matter 2 Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Why Managers Still Matter 2 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the declining industry development. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the information related to the consumer demand, the prospective markets, the government policies and the data associated with the rivals provided in the market. After that, the company ought to choose one potential segment for its preliminary offering. It must gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business should choose the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a threat to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
