Bake Me A Cake 5 Case Study Solution and Analysis
Introduction
Bake Me A Cake 5 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing information and interaction services. Significant service segments of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Bake Me A Cake 5 Case Study Help has ended up being a specialized information service provider and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and Bake Me A Cake 5 Case Study Help in specific. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 capabilities of the company 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
Bake Me A Cake 5 Case Study Solution has certain strengths that can be utilized to reduce the threats, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Bake Me A Cake 5 Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position allows the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Bake Me A Cake 5 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Bake Me A Cake 5 Case Study Analysis as well, however the development could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has actually postured specific risks to Bake Me A Cake 5 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Bake Me A Cake 5 Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The overall monetary performance of the company might be examined by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Bake Me A Cake 5 Case Study Solution is growing and the business is rather efficient in attracting a large number of customers at a prospective price.
Along with it, the 2nd graph which shows the annual development in the Bake Me A Cake 5 Case Study Help total possessions, shows that the business is quite efficient in including worth to its assets through its revenues. The development in properties reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis concerning the distribution of total incomes of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
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 development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products and so on. China has the greatest population in the world with a high population growth, showing the increasing number of customers of the Bake Me A Cake 5 Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Bake Me A Cake 5 Case Study Analysis consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The alternative products for the published documents is the files provided in the virtual libraries on certain websites. The altering customer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bake Me A Cake 5 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Bake Me A Cake 5 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Bake Me A Cake 5 Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the popular gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand 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 industry.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially gathers the information associated with the consumer demand, the potential markets, the government guidelines and the data connected to the rivals presented in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It should collect research study that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the business must opt for the initial offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a danger to the business's long term presence, but the circumstance can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.
