Cumberland Worldwide Corporation 4 Case Study Solution and Analysis
Introduction
Cumberland Worldwide Corporation 4 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information company and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Cumberland Worldwide Corporation 4 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Cumberland Worldwide Corporation 4 Case Study Help has certain strengths that can be used to reduce the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Cumberland Worldwide Corporation 4 Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the business to consider several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of Cumberland Worldwide Corporation 4 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth plans to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining given that 2008, impacting Cumberland Worldwide Corporation 4 Case Study Help as well, however the development might be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has posed particular dangers to Cumberland Worldwide Corporation 4 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Cumberland Worldwide Corporation 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. However, the general monetary performance of the company might be evaluated by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Cumberland Worldwide Corporation 4 Case Study Solution is growing and the company is rather effective in attracting a a great deal of customers at a possible price.
In addition to it, the 2nd graph which shows the yearly development in the Cumberland Worldwide Corporation 4 Case Study Solution total possessions, reveals that the business is rather effective in adding value to its possessions through its incomes. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis concerning the circulation of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it might be said that the total political forces impacting Cumberland Worldwide Corporation 4 Case Study Solution organisation 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 Cumberland Worldwide Corporation 4 Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population on the planet with a high population development, showing the increasing number of customers of the Cumberland Worldwide Corporation 4 Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation together with the rise of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Cumberland Worldwide Corporation 4 Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines 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 entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. However, the presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Cumberland Worldwide Corporation 4 Case Study Analysis include the suppliers of the paper for publishing documents. 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 Purchaser.
Negotiating 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 files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Cumberland Worldwide Corporation 4 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among the prominent players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company need an immediate service to prevent the declining market growth. Therefore, intro of digital publishing might show to be an instant solution with low quantity of risk for the business. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should first collects the data associated with the consumer need, the prospective markets, the federal government regulations and the information connected to the rivals provided in the market. After that, the business must decide one potential section for its preliminary offering. It needs to collect research study that how it could separate its digital publishing from the existing rivals' products. The actions above the company need to go for the initial offering. If the initial offering shows a success, the business needs to opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a hazard to the business's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
