Cola War Continues Coke And Pepsi In 2010 Case Study Solution and Analysis
Introduction
Cola War Continues Coke And Pepsi In 2010 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Cola War Continues Coke And Pepsi In 2010 Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cola War Continues Coke And Pepsi In 2010 Case Study Analysis has certain strengths that can be made use of to lower the threats, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Cola War Continues Coke And Pepsi In 2010 Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong financial position allows the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Cola War Continues Coke And Pepsi In 2010 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting Cola War Continues Coke And Pepsi In 2010 Case Study Solution as well, however the development could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has posed specific dangers to Cola War Continues Coke And Pepsi In 2010 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Cola War Continues Coke And Pepsi In 2010 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market together with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total incomes of Cola War Continues Coke And Pepsi In 2010 Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a big number of customers at a potential price.
Along with it, the 2nd graph which shows the annual growth in the Cola War Continues Coke And Pepsi In 2010 Case Study Analysis overall possessions, reveals that the business is quite efficient in including worth to its properties through its incomes. The development in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the circulation of total revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Cola War Continues Coke And Pepsi In 2010 Case Study Solution in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies related to the import of books affect the general company at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Cola War Continues Coke And Pepsi In 2010 Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Cola War Continues Coke And Pepsi In 2010 Case Study Help include the providers of the paper for releasing documents. 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 Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Cola War Continues Coke And Pepsi In 2010 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant solution to avoid the declining market growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the data related to the consumer need, the prospective markets, the government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entrance in the new markets.
