Cumberland Worldwide Corporation 2 Case Study Solution and Analysis
Cumberland Worldwide Corporation 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing info and interaction services. Major organisation segments of the business include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Cumberland Worldwide Corporation 2 Case Study Solution has actually ended up being a specialized information provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Cumberland Worldwide Corporation 2 Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Cumberland Worldwide Corporation 2 Case Study Help has specific strengths that can be utilized to lower the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Cumberland Worldwide Corporation 2 Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the company to think about a number of development chances with no fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weak points of Cumberland Worldwide Corporation 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing market is decreasing considering that 2008, impacting Cumberland Worldwide Corporation 2 Case Study Solution as well, however the development might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has postured certain dangers to Cumberland Worldwide Corporation 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Cumberland Worldwide Corporation 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competition increases the risk of losing the customer base.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total earnings of Cumberland Worldwide Corporation 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a large number of clients at a possible rate.
Together with it, the second graph which shows the annual development in the Cumberland Worldwide Corporation 2 Case Study Analysis total assets, reveals that the company is rather effective in adding worth to its assets through its earnings. The development in assets reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis regarding the distribution of overall incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a potential growth to achieve its future development goal.
PESTEL analysis could be conducted to find out the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces affecting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Cumberland Worldwide Corporation 2 Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out useful materials and so on. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Cumberland Worldwide Corporation 2 Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Cumberland Worldwide Corporation 2 Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal 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 Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the threat of substitution for the industry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Cumberland Worldwide Corporation 2 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 provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Cumberland Worldwide Corporation 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in various market sectors, with a significant concentrate on instructional publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Cumberland Worldwide Corporation 2 Case Study Solution quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Cumberland Worldwide Corporation 2 Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. Intro of digital publishing might show to be an immediate service with low quantity of threat for the company. The business could likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary 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.
Although, the development of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, however the scenario can be managed by thinking about an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.