Canopy Growth Corporation Case Study Solution and Analysis
Canopy Growth Corporation Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and interaction services. Significant organisation segments of the company include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, regulars, online media, exhibits, research reports etc. Canopy Growth Corporation Case Study Solution has become a specialized info service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Canopy Growth Corporation Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Canopy Growth Corporation Case Study Analysis has specific strengths that can be utilized to minimize the threats, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Canopy Growth Corporation Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position enables the company to consider several advancement chances without any fear of raising fund externally.
Along with the strengths, the company has certain weak points which might increase restrictions for the business in executing its development program. The weaknesses of Canopy Growth Corporation Case Study Analysis are provided 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 certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing industry is decreasing because 2008, affecting Canopy Growth Corporation Case Study Analysis as well, however the growth could be restored by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular hazards to Canopy Growth Corporation Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Canopy Growth Corporation Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry together with presence of high competitors increases the danger of losing the consumer base.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. However, the general monetary performance of the business could be evaluated by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Canopy Growth Corporation Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of consumers at a possible cost.
In addition to it, the second graph which shows the annual growth in the Canopy Growth Corporation Case Study Solution overall possessions, reveals that the company is rather effective in including value to its assets through its incomes. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis regarding the distribution of overall profits of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a prospective development to attain its future development objective.
PESTEL analysis might be conducted to discover the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Canopy Growth Corporation Case Study Help 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 general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Canopy Growth Corporation Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Canopy Growth Corporation Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry 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 documents at competitive costs.
CMP operates in a highly competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Canopy Growth Corporation Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Canopy Growth Corporation Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the company need an instant option to avoid the declining industry development. Introduction of digital publishing might prove to be an instant option with low amount of threat for the company. The company might 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 needs to first collects the data related to the customer demand, the possible markets, the federal government policies and the data connected to the rivals provided in the market. After that, the company should choose one potential segment for its preliminary offering. It must gather research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the business should go for the preliminary offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to implement its digital publishing program.
The growth of the publishing market is declining because 2008, revealing a danger to the company's long term presence, but the scenario can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.