Cookie Man Exploring New Frontiers Case Study Solution and Analysis
Cookie Man Exploring New Frontiers Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; collecting info, processing information and interaction services. Significant service sections of the company include; books, regulars, consultancy and distribution. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research reports etc. Cookie Man Exploring New Frontiers Case Study Solution has ended up being a specialized info service provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Cookie Man Exploring New Frontiers Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns 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 abilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Cookie Man Exploring New Frontiers Case Study Analysis has certain strengths that can be made use of to minimize the threats, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Cookie Man Exploring New Frontiers Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position enables the business to think about several advancement chances with no fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its advancement program. The weak points of Cookie Man Exploring New Frontiers Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is decreasing because 2008, affecting Cookie Man Exploring New Frontiers Case Study Analysis as well, but the development could be revived by availing certain chances presented in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed particular dangers to Cookie Man Exploring New Frontiers Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Cookie Man Exploring New Frontiers Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. However, the total monetary efficiency of the company could be evaluated by utilizing the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Cookie Man Exploring New Frontiers Case Study Solution is growing and the company is rather efficient in bring in a a great deal of consumers at a potential rate.
In addition to it, the 2nd chart which reveals the annual growth in the Cookie Man Exploring New Frontiers Case Study Help total properties, shows that the company is rather efficient in including worth to its properties through its revenues. The growth in assets shows that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of overall incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a possible growth to achieve its future development goal.
PESTEL analysis could be carried out to discover the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Cookie Man Exploring New Frontiers Case Study Help business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Cookie Man Exploring New Frontiers Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Cookie Man Exploring New Frontiers Case Study Help includes the concerns of ecological 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 must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the files presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Cookie Man Exploring New Frontiers Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser 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 files at competitive costs.
CMP operates in an extremely competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Cookie Man Exploring New Frontiers Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the same period, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and third in different market sections, with a significant focus on instructional publications. CIP serves as a danger 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 marketplace share of Cookie Man Exploring New Frontiers Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Cookie Man Exploring New Frontiers Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company need an immediate option to avoid the decreasing market development. For that reason, intro of digital publishing could show to be an immediate option with low quantity of risk for the business. However, the business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information associated with the customer need, the possible markets, the government regulations and the data related to the competitors provided in the market. After that, the company should decide one prospective section for its initial offering. It needs to collect research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the business should choose the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to execute its digital publishing program.
The development of the publishing market is declining considering that 2008, revealing a threat to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.