Aztek Chocolate Studio Case Study Solution and Analysis
Aztek Chocolate Studio Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in basic and Aztek Chocolate Studio Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Aztek Chocolate Studio Case Study Help has specific strengths that can be made use of to reduce the risks, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Aztek Chocolate Studio Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to consider a number of development chances without any fear of raising fund externally.
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Aztek Chocolate Studio Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional 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 specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing industry is declining since 2008, impacting Aztek Chocolate Studio Case Study Solution as well, however the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has presented specific hazards to Aztek Chocolate Studio Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Aztek Chocolate Studio Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the consumer base.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the total financial efficiency of the business might be evaluated by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Aztek Chocolate Studio Case Study Help is growing and the business is rather effective in drawing in a a great deal of consumers at a potential rate.
Along with it, the second graph which reveals the yearly growth in the Aztek Chocolate Studio Case Study Solution total properties, reveals that the business is rather efficient in adding value to its assets through its incomes. The development in properties reveals that the overall value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business using the offered data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to achieve its future development objective.
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative materials and so on. China has the highest population in the world with a high population development, showing the increasing number of customers of the Aztek Chocolate Studio Case Study Solution. However, the customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Aztek Chocolate Studio Case Study Analysis consists of the concerns of environmental communities over the use 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 harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the hazard of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Aztek Chocolate Studio Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Aztek Chocolate Studio Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a significant concentrate on educational publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Aztek Chocolate Studio Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Aztek Chocolate Studio Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to prevent the decreasing market development. Intro of digital publishing could prove to be an instant option with low amount of threat for the business. However, the company could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should initially collects the data associated with the consumer need, the prospective markets, the federal government regulations and the information associated with the competitors provided in the market. After that, the business ought to decide one possible segment for its preliminary offering. It ought to gather research that how it might separate its digital publishing from the existing competitors' items. The steps above the company should go for the preliminary offering. If the initial offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining because 2008, revealing a danger to the business's long term presence, however the situation can be controlled by considering a development strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.