Cumberland Worldwide Corporation 4 Case Study Solution and Analysis
Cumberland Worldwide Corporation 4 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in basic and Cumberland Worldwide Corporation 4 Case Study Solution in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns 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 abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Cumberland Worldwide Corporation 4 Case Study Solution has certain strengths that can be made use of to decrease the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Cumberland Worldwide Corporation 4 Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position permits the business to think about several advancement opportunities with no worry of raising fund externally.
In addition to the strengths, the business has specific weak points which might increase restrictions for the company in executing its advancement program. The weak points of Cumberland Worldwide Corporation 4 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining because 2008, impacting Cumberland Worldwide Corporation 4 Case Study Solution also, however the development might be restored by availing particular opportunities provided 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 recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has positioned particular hazards to Cumberland Worldwide Corporation 4 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Cumberland Worldwide Corporation 4 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Due to lack of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly overall incomes of Cumberland Worldwide Corporation 4 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather effective in bring in a big number of customers at a potential price.
Along with it, the second graph which shows the annual development in the Cumberland Worldwide Corporation 4 Case Study Help overall properties, shows that the business is quite efficient in adding value to its possessions through its earnings. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis relating to the circulation of total earnings of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective development to attain its future development goal.
PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Cumberland Worldwide Corporation 4 Case Study Solution service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting Cumberland Worldwide Corporation 4 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the risk of substitution for the industry.
Competitive competition in the publishing market is high. The existence 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 entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Cumberland Worldwide Corporation 4 Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Cumberland Worldwide Corporation 4 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 current market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Cumberland Worldwide Corporation 4 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market growth. Therefore, introduction of digital publishing might prove to be an immediate option with low amount of threat for the business. Nevertheless, the business could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should initially gathers the information connected to the customer need, the possible markets, the federal government policies and the information associated with the rivals presented in the market. After that, the company should choose one prospective segment for its preliminary offering. It ought to gather research that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company need to go for the preliminary offering. If the initial offering shows a success, the business ought to opt for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining considering that 2008, revealing a threat to the business's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entryway in the new markets.