Clear Water Sea Foods Case Study Solution and Analysis
Intro
Clear Water Sea Foods Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Clear Water Sea Foods Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Clear Water Sea Foods Case Study Solution has specific strengths that can be used to decrease the threats, conquer the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Clear Water Sea Foods Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its clients.
• Strong financial position allows the business to think about a number of development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restraints for the company in implementing its advancement program. The weak points of Clear Water Sea Foods Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Clear Water Sea Foods Case Study Solution also, however the growth could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned specific risks to Clear Water Sea Foods Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Clear Water Sea Foods Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be determined. Nevertheless, the overall financial efficiency of the company could be evaluated by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Clear Water Sea Foods Case Study Help is growing and the company is rather effective in drawing in a large number of customers at a possible rate.
In addition to it, the second graph which shows the annual development in the Clear Water Sea Foods Case Study Analysis overall properties, reveals that the company is quite efficient in including value to its properties through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of total earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Clear Water Sea Foods Case Study Help service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Clear Water Sea Foods Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the total service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Clear Water Sea Foods Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Clear Water Sea Foods Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers 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 marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Clear Water Sea Foods Case Study Solution consist of the suppliers of the paper for publishing files. 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 Purchaser.
Haggling 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 requires high quality files at competitive prices.
Rivals 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 highest market share in the Chinese publishing market. Major rivals of Clear Water Sea Foods Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and third in various market segments, with a significant focus on instructional publications. CIP functions as a threat 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 Clear Water Sea Foods Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Clear Water Sea Foods Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant solution to avoid the decreasing market growth. Therefore, introduction of digital publishing could show to be an instant service with low quantity of risk for the company. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business must first collects the information related to the consumer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a threat to the business's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
