Cedar Fair Lp Case Study Solution and Analysis
Introduction
Cedar Fair Lp Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Cedar Fair Lp Case Study Help has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cedar Fair Lp Case Study Analysis has specific strengths that can be used to reduce the hazards, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Cedar Fair Lp Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the business to consider numerous development opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which could increase restraints for the company in executing its development program. The weak points of Cedar Fair Lp Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Cedar Fair Lp Case Study Analysis as well, however the development could be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise present 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 expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has postured certain hazards to Cedar Fair Lp Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Cedar Fair Lp Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall incomes of Cedar Fair Lp Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in bring in a large number of clients at a prospective price.
Along with it, the second chart which reveals the annual growth in the Cedar Fair Lp Case Study Analysis total properties, shows that the company is quite effective in adding worth to its assets through its incomes. The growth in assets shows that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the business using the provided data could be the analysis concerning the circulation of overall revenues 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 company could move towards other organisation sections with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be said that the total political forces affecting Cedar Fair Lp Case Study Analysis business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Cedar Fair Lp Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Cedar Fair Lp Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Cedar Fair Lp Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant service to prevent the decreasing industry growth. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to first gathers the information related to the customer need, the prospective markets, the federal government guidelines and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term existence, however the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
