Canopy Growth Corporation Case Study Solution and Analysis
Introduction
Canopy Growth Corporation Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain challenges to the publishing industry in basic and Canopy Growth Corporation Case Study Solution in particular. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Canopy Growth Corporation Case Study Analysis has specific strengths that can be made use of to decrease the threats, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Canopy Growth Corporation Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position permits the business to consider numerous advancement opportunities without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Canopy Growth Corporation Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting Canopy Growth Corporation Case Study Analysis also, but the growth could be restored by availing particular opportunities presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has postured specific risks to Canopy Growth Corporation Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Canopy Growth Corporation Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors 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 using certain methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total earnings of Canopy Growth Corporation Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a potential cost.
Together with it, the 2nd chart which reveals the annual growth in the Canopy Growth Corporation Case Study Analysis total assets, reveals that the company is rather effective in including value to its properties through its incomes. The growth in assets shows that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the distribution of total earnings of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state 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 Celebration of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading helpful materials etc. China has the greatest population on the planet with a high population development, showing the increasing variety of consumers of the Canopy Growth Corporation Case Study Solution. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Canopy Growth Corporation Case Study Help consists of 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 ought to not be harmful for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative items for the released files is the files provided in the digital libraries on specific websites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence 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. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Canopy Growth Corporation Case Study Solution 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 overall 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. However, the business 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 Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Canopy Growth Corporation Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an instant option with low quantity of threat for the business. However, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the data related to the consumer need, the possible markets, the government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a danger to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
