Chinas Bright Food Overseas Ma Strategy Case Study Solution and Analysis
Intro
Chinas Bright Food Overseas Ma Strategy Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and interaction services. Significant organisation sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items consist of books, regulars, online media, exhibits, research study reports and so on. Chinas Bright Food Overseas Ma Strategy Case Study Analysis has actually ended up being a specialized info supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Chinas Bright Food Overseas Ma Strategy Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Chinas Bright Food Overseas Ma Strategy Case Study Analysis has specific strengths that can be utilized to minimize the hazards, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Chinas Bright Food Overseas Ma Strategy Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position enables the company to think about several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which could increase restraints for the business in executing its advancement program. The weak points of Chinas Bright Food Overseas Ma Strategy Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Chinas Bright Food Overseas Ma Strategy Case Study Analysis as well, but the growth could be revived by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain risks to Chinas Bright Food Overseas Ma Strategy Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Chinas Bright Food Overseas Ma Strategy Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total incomes of Chinas Bright Food Overseas Ma Strategy Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a large number of consumers at a potential cost.
Together with it, the 2nd chart which shows the annual development in the Chinas Bright Food Overseas Ma Strategy Case Study Analysis overall assets, reveals that the business is quite effective in including worth to its assets through its profits. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis relating to the circulation of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the efficiency of the business and the recent patterns 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 significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Chinas Bright Food Overseas Ma Strategy Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Chinas Bright Food Overseas Ma Strategy Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies associated with the import of books impact the total company at CPM. However, China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out useful products etc. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Chinas Bright Food Overseas Ma Strategy Case Study Solution. However, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Chinas Bright Food Overseas Ma Strategy Case Study Analysis includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Chinas Bright Food Overseas Ma Strategy Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Chinas Bright Food Overseas Ma Strategy Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP publishes similar type of books. For a large time period, CIP held the biggest market share, and still ranks second and third in various market sections, with a significant focus on instructional publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Chinas Bright Food Overseas Ma Strategy Case Study Help easily in the current market situation.
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 6th in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
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 advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the decreasing industry development. Therefore, introduction of digital publishing might show to be an instant option with low amount of risk for the business. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the information associated with the customer demand, the possible markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the business should decide one possible section for its initial offering. It should gather research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business should go for the initial offering. If the preliminary offering shows a success, the company should choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a threat to the company's long term presence, however the situation can be managed by considering an advancement plan in the future. The company might 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 brand-new markets.
