Cumberland Worldwide Corporation 3 Case Study Solution and Analysis
Cumberland Worldwide Corporation 3 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 consisting of; gathering information, processing information and interaction services. Significant organisation sections of the business consist of; books, regulars, consultancy and distribution. The company has a large product portfolio and its major items include books, regulars, online media, exhibits, research reports and so on. Cumberland Worldwide Corporation 3 Case Study Analysis has become a specialized information company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Cumberland Worldwide Corporation 3 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing industry in basic and CMP in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Cumberland Worldwide Corporation 3 Case Study Solution has specific strengths that can be made use of to minimize the risks, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Cumberland Worldwide Corporation 3 Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the company to think about numerous development opportunities with no worry of raising fund externally.
Together with the strengths, the company has certain weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Cumberland Worldwide Corporation 3 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is declining considering that 2008, affecting Cumberland Worldwide Corporation 3 Case Study Help as well, however the growth could be restored by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has posed certain threats to Cumberland Worldwide Corporation 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Cumberland Worldwide Corporation 3 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the threat of losing the consumer base.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Cumberland Worldwide Corporation 3 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in bring in a large number of clients at a prospective price.
In addition to it, the second graph which shows the yearly development in the Cumberland Worldwide Corporation 3 Case Study Solution overall properties, shows that the business is rather efficient in including value to its possessions through its incomes. The development in properties shows that the total value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the provided data might be the analysis concerning the distribution of total incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be conducted to find out the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Cumberland Worldwide Corporation 3 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. Together with it, the economic policies related to the import of books affect the total service at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces affecting Cumberland Worldwide Corporation 3 Case Study Analysis includes 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 damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the digital libraries on particular sites. The changing customer preferences towards digital knowing increase the threat of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Cumberland Worldwide Corporation 3 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 needs high quality documents at competitive rates.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Cumberland Worldwide Corporation 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Cumberland Worldwide Corporation 3 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors 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.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company require an immediate service to avoid the declining market growth. Intro of digital publishing could prove to be an instant option with low amount of risk for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the customer demand, the possible markets, the government regulations and the data associated with the rivals presented in the market. After that, the business must decide one prospective segment for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing rivals' products. The actions above the company must go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is declining since 2008, showing a hazard to the company's long term existence, but the scenario can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.