Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Solution and Analysis
Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info company and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These elements consist of;
• 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 innovation.
The transformation 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help has specific strengths that can be utilized to reduce the dangers, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the company to consider several advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help as well, but the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competition in the publishing market has postured particular threats to Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific techniques like aggressive promo, quality products, etc.
• Entrance of new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the client base.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly overall earnings of Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in attracting a big number of consumers at a potential price.
Together with it, the 2nd graph which reveals the yearly growth in the Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help total possessions, reveals that the company is rather efficient in adding value to its assets through its earnings. The development in assets shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the distribution of overall revenues of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a potential development to attain its future development goal.
PESTEL analysis could be carried out to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful materials and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Analysis. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP operates in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in different market sections, with a significant focus on educational publications. CIP serves 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 Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Coca Cola And Huiyuan B Antitrust Barriers To Buying Top Chinese Brands Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should first collects the data related to the customer demand, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing since 2008, showing a hazard 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 introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.