Aztek Chocolate Studio Case Study Solution and Analysis
Introduction
Aztek Chocolate Studio Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing info and communication services. Significant organisation segments of the business consist of; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Aztek Chocolate Studio Case Study Solution has become a specialized information company and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and Aztek Chocolate Studio Case Study Analysis 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 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 scenario? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aztek Chocolate Studio Case Study Analysis has certain strengths that can be made use of to decrease the dangers, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Aztek Chocolate Studio Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position permits the business to consider several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restrictions for the business in executing its advancement program. The weaknesses of Aztek Chocolate Studio Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, 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 must propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Aztek Chocolate Studio Case Study Analysis too, but the growth might be restored by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has posed certain risks to Aztek Chocolate Studio Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause 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 threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be computed. However, the overall monetary efficiency of the business could be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Aztek Chocolate Studio Case Study Help is growing and the business is rather efficient in bring in a large number of consumers at a possible rate.
Along with it, the second chart which shows the annual growth in the Aztek Chocolate Studio Case Study Help overall assets, reveals that the company is quite effective in including value to its possessions through its revenues. The development in properties shows that the total worth of the firm is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the circulation of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company segments with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Aztek Chocolate Studio Case Study Analysis organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Aztek Chocolate Studio Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the overall business at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Aztek Chocolate Studio Case Study Analysis consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Aztek Chocolate Studio Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Aztek Chocolate Studio Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sectors, with a major concentrate on educational publications. CIP serves as a hazard 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 Aztek Chocolate Studio Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an instant solution to prevent the decreasing market development. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the consumer demand, the possible markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The company might consider 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.
