Cumberland Worldwide Corporation 3 Case Study Solution and Analysis
Intro
Cumberland Worldwide Corporation 3 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Cumberland Worldwide Corporation 3 Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of 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
Cumberland Worldwide Corporation 3 Case Study Analysis has certain strengths that can be used to reduce the risks, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Cumberland Worldwide Corporation 3 Case Study Help in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the business to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restraints for the business in executing its advancement program. The weak points of Cumberland Worldwide Corporation 3 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining because 2008, impacting Cumberland Worldwide Corporation 3 Case Study Solution as well, however the development might be restored by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has posed particular hazards to Cumberland Worldwide Corporation 3 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Cumberland Worldwide Corporation 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain methods like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total profits of Cumberland Worldwide Corporation 3 Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of clients at a prospective price.
In addition to it, the second chart which reveals the annual development in the Cumberland Worldwide Corporation 3 Case Study Help overall properties, shows that the company is rather efficient in adding value to its possessions through its profits. The development in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis relating to the circulation of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Cumberland Worldwide Corporation 3 Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful materials and so on. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Cumberland Worldwide Corporation 3 Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Cumberland Worldwide Corporation 3 Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Cumberland Worldwide Corporation 3 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence 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 Cumberland Worldwide Corporation 3 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in numerous market sectors, with a major focus on instructional publications. CIP acts 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 might wean the market share of Cumberland Worldwide Corporation 3 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant option to prevent the decreasing market growth. The business could 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 business needs to first collects the data related to the consumer need, the potential markets, the government regulations and the data related to the rivals presented in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
