Clearwater Seafood Case Study Solution and Analysis
Introduction
Clearwater Seafood Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Clearwater Seafood Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining 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 several questions 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Clearwater Seafood Case Study Analysis has certain strengths that can be made use of to lower the risks, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Clearwater Seafood Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong monetary position enables the business to consider several development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Clearwater Seafood Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Clearwater Seafood Case Study Solution as well, but the growth could be revived by availing certain chances presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific threats to Clearwater Seafood Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Clearwater Seafood Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total revenues of Clearwater Seafood Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in attracting a big number of consumers at a potential price.
In addition to it, the second chart which shows the yearly development in the Clearwater Seafood Case Study Help overall properties, reveals that the business is rather effective in including worth to its assets through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis relating to the circulation of overall earnings of the company. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Clearwater Seafood Case Study Analysis company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Clearwater Seafood Case Study Analysis consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines 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 Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Clearwater Seafood Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry 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 costs.
Competitors Analysis.
CMP runs in an extremely 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. Significant competitors of Clearwater Seafood Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Clearwater Seafood Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market development. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first gathers the information connected to the consumer need, the possible markets, the government regulations and the data connected to the competitors provided in the market. After that, the business should choose one possible section for its preliminary offering. It ought to gather research study that how it could distinguish its digital publishing from the existing rivals' products. The actions above the business ought to go for the initial offering. If the initial offering proves a success, the company ought to choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, showing a danger to the company's long term existence, however the situation can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
