Corner Bakery Cafe Case Study Solution and Analysis
Introduction
Corner Bakery Cafe Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized details supplier and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Corner Bakery Cafe Case Study Solution has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation 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 abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Corner Bakery Cafe Case Study Solution has particular strengths that can be made use of to reduce the risks, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Corner Bakery Cafe Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the business to think about a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Corner Bakery Cafe Case Study Analysis are given 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 extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, affecting Corner Bakery Cafe Case Study Analysis too, but the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise 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 expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually postured specific hazards to Corner Bakery Cafe Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Corner Bakery Cafe Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. However, the overall monetary efficiency of the business could be evaluated by utilizing the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of Corner Bakery Cafe Case Study Solution is growing and the business is quite effective in drawing in a large number of clients at a prospective rate.
In addition to it, the second chart which shows the yearly growth in the Corner Bakery Cafe Case Study Solution overall possessions, shows that the company is quite effective in adding value to its assets through its revenues. The growth in assets reveals that the total worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall profits of the business. 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 could move towards other business sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Corner Bakery Cafe Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total service at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development 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 should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Corner Bakery Cafe Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Corner Bakery Cafe Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Corner Bakery Cafe Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases similar kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a significant concentrate on educational publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Corner Bakery Cafe Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the declining industry development. The business might likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first collects the information connected to the customer demand, the possible markets, the government guidelines and the information connected to the competitors provided in the market. After that, the company needs to decide one possible sector for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing competitors' items. The actions above the company must go for the preliminary offering. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a risk to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
