Bake Me A Cake 5 Case Study Solution and Analysis
Bake Me A Cake 5 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info service provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Bake Me A Cake 5 Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in particular. These elements consist of;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Bake Me A Cake 5 Case Study Analysis has specific strengths that can be used to lower the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Bake Me A Cake 5 Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the company to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the business has specific weak points which could increase restrictions for the business in implementing its development program. The weak points of Bake Me A Cake 5 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its reliance over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining since 2008, impacting Bake Me A Cake 5 Case Study Analysis also, but the development might be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has actually posed particular dangers to Bake Me A Cake 5 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Bake Me A Cake 5 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the threat of losing the client base.
Due to absence of data, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the annual overall profits of Bake Me A Cake 5 Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite effective in attracting a large number of customers at a possible price.
In addition to it, the second chart which shows the annual development in the Bake Me A Cake 5 Case Study Help overall properties, reveals that the business is rather efficient in including worth to its possessions through its revenues. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the provided information might be the analysis regarding the circulation of total earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it could be said that the total political forces impacting Bake Me A Cake 5 Case Study Analysis company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Bake Me A Cake 5 Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the total service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Bake Me A Cake 5 Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Bake Me A Cake 5 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
CMP operates in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bake Me A Cake 5 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market segments, 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 Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Bake Me A Cake 5 Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
• Competition in the market by CIP, who has prior concentrate 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.
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to avoid the decreasing market development. Therefore, intro of digital publishing could show to be an immediate solution with low quantity of threat for the company. The company could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the data related to the consumer need, the potential markets, the federal government policies and the information associated with the competitors presented in the market. After that, the company needs to decide one possible segment for its preliminary offering. It should gather research study that how it could separate its digital publishing from the existing rivals' items. The actions above the company ought to go for the initial offering. If the initial offering proves a success, the business must opt for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, showing a danger to the company's long term existence, but the situation can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.