Clearwater Sea Foods Case Study Solution and Analysis
Introduction
Clearwater Sea Foods Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing info and interaction services. Significant business sections of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Clearwater Sea Foods Case Study Solution has ended up being a specialized information service provider and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Clearwater Sea Foods Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change 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 scenario? Do the long important experience, technical resources and the capabilities of the company could be used 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
Clearwater Sea Foods Case Study Help has particular strengths that can be made use of to reduce the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Clearwater Sea Foods Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which could increase restrictions for the company in executing its advancement program. The weak points of Clearwater Sea Foods Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Clearwater Sea Foods Case Study Solution as well, but the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has postured particular risks to Clearwater Sea Foods Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Clearwater Sea Foods Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The overall monetary performance of the company could be examined by using the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Clearwater Sea Foods Case Study Solution is growing and the company is rather efficient in bring in a large number of customers at a prospective rate.
Along with it, the second chart which reveals the yearly development in the Clearwater Sea Foods Case Study Help total possessions, shows that the business is quite effective in including worth to its possessions through its incomes. The development in assets reveals that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis relating to the circulation of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
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 general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading useful products etc. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Clearwater Sea Foods Case Study Solution. However, the customer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Clearwater Sea Foods Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable 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 regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Clearwater Sea Foods Case Study Solution consist of the suppliers 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 buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Clearwater Sea Foods Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Clearwater Sea Foods Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business need an instant option to avoid the decreasing industry development. Intro of digital publishing could show to be an immediate option with low amount of danger for the business. However, the business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should initially gathers the data related to the consumer need, the prospective markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a threat to the business's long term existence, but the situation can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
