Cedar Fair Lp Case Study Solution and Analysis
Cedar Fair Lp Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized details company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Cedar Fair Lp Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Cedar Fair Lp Case Study Analysis has particular strengths that can be made use of to minimize the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Cedar Fair Lp Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong monetary position enables the business to think about numerous development chances with no fear of raising fund externally.
Together with the strengths, the company has specific weak points which might increase restrictions for the business in executing its development program. The weak points of Cedar Fair Lp Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining since 2008, impacting Cedar Fair Lp Case Study Solution too, however the development could be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The business could also introduce 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 growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has actually posed certain dangers to Cedar Fair Lp Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Cedar Fair Lp Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the hazard of losing the client base.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be computed. The total monetary efficiency of the company might be analyzed by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of Cedar Fair Lp Case Study Solution is growing and the business is rather efficient in drawing in a a great deal of customers at a prospective rate.
Together with it, the second chart which reveals the annual growth in the Cedar Fair Lp Case Study Analysis total possessions, reveals that the business is rather effective in including worth to its possessions through its profits. The growth in possessions shows that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis regarding the circulation of overall revenues of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a prospective growth to accomplish its future advancement goal.
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Cedar Fair Lp Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Cedar Fair Lp Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces affecting Cedar Fair Lp Case Study Help consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats 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 intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the published documents is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the risk of substitution for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Cedar Fair Lp Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
CMP operates in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Cedar Fair Lp Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in different market segments, with a major concentrate on educational publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Cedar Fair Lp Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the company need an instant option to prevent the declining industry growth. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially collects the information associated with the consumer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. After that, the company needs to decide one possible section for its preliminary offering. It ought to collect research that how it might distinguish its digital publishing from the existing rivals' products. The steps above the company ought to go for the initial offering. 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.
Although, the development of the publishing industry is declining because 2008, revealing a risk to the company's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.