Cartwright Lumber Company Case Study Solution and Analysis
Introduction
Cartwright Lumber Company Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering info, processing information and communication services. Major company sections of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant products include books, periodicals, online media, exhibits, research reports and so on. Cartwright Lumber Company Case Study Help has actually become a specialized info provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Cartwright Lumber Company Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cartwright Lumber Company Case Study Help has particular strengths that can be used to decrease the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cartwright Lumber Company Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the company to consider several development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Cartwright Lumber Company Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Cartwright Lumber Company Case Study Analysis as well, but the development could be revived by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured particular risks to Cartwright Lumber Company Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Cartwright Lumber Company Case Study Help 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 acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry together with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP could not be determined. Nevertheless, the general financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Cartwright Lumber Company Case Study Help is growing and the company is rather efficient in drawing in a large number of customers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly development in the Cartwright Lumber Company Case Study Help overall possessions, shows that the company is quite effective in including worth to its assets through its profits. The growth in properties shows that the total value of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis concerning the distribution of total revenues of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings 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.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Cartwright Lumber Company Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Cartwright Lumber Company Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the threat 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. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Cartwright Lumber Company Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market 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 documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Cartwright Lumber Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Cartwright Lumber Company Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat 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 current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 company sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining market development. For that reason, introduction of digital publishing might show to be an instant option with low quantity of danger for the company. Nevertheless, the company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially gathers the information related to the consumer demand, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
