Cookie Man Exploring New Frontiers Case Study Solution and Analysis
Introduction
Cookie Man Exploring New Frontiers 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 info service provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and Cookie Man Exploring New Frontiers Case Study Analysis in specific. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions 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 company 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
Cookie Man Exploring New Frontiers Case Study Analysis has specific strengths that can be utilized to reduce the hazards, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Cookie Man Exploring New Frontiers Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position enables the business to consider several development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weak points of Cookie Man Exploring New Frontiers Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, 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 expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing because 2008, affecting Cookie Man Exploring New Frontiers Case Study Solution as well, however the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to Cookie Man Exploring New Frontiers Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Cookie Man Exploring New Frontiers Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly overall profits of Cookie Man Exploring New Frontiers Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of consumers at a prospective rate.
Along with it, the 2nd chart which shows the yearly growth in the Cookie Man Exploring New Frontiers Case Study Analysis overall possessions, shows that the company is rather effective in adding value to its possessions through its incomes. The development in assets shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of total profits 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 business could move towards other business segments with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect 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 Celebration of China. It could be said that the general political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Cookie Man Exploring New Frontiers Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the total company at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Cookie Man Exploring New Frontiers Case Study Solution consists of the issues of environmental 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Cookie Man Exploring New Frontiers Case Study Solution include the providers of the paper for publishing 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.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number 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 industry 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. Major competitors of Cookie Man Exploring New Frontiers Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a major concentrate on instructional publications. CIP acts as a threat 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 market share of Cookie Man Exploring New Frontiers Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Cookie Man Exploring New Frontiers Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining industry development. For that reason, introduction of digital publishing could prove to be an immediate service with low amount of threat for the business. Nevertheless, the business might likewise 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 business should initially gathers the data related to the consumer need, the prospective markets, the federal 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 way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a threat to the business's long term presence, however the scenario can be managed by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
