Diamond Foods Case Study Solution and Analysis
Introduction
Diamond Foods Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Diamond Foods Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Diamond Foods Case Study Analysis has specific strengths that can be utilized to decrease the dangers, conquer the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Diamond Foods Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to think about several development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase constraints for the company in implementing its advancement program. The weak points of Diamond Foods Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Diamond Foods Case Study Help as well, but the growth could be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has postured certain threats to Diamond Foods Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Diamond Foods Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall earnings of Diamond Foods Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a potential cost.
Along with it, the second chart which reveals the annual growth in the Diamond Foods Case Study Solution total possessions, reveals that the business is rather efficient in including value to its possessions through its incomes. The growth in possessions reveals that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information might be the analysis relating to the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Diamond Foods Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. 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 service at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of customers of the Diamond Foods Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing might minimize the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Diamond Foods Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the files provided in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number 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 also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Diamond Foods Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Diamond Foods Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a significant focus on educational publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Diamond Foods Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Diamond Foods Case Study Solution and CIP. It is also one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market development. The company might 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 company should first collects the data related to the customer need, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the business must choose one potential segment for its initial offering. It must collect research study that how it could differentiate its digital publishing from the existing rivals' items. After all the actions above the business must choose the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, showing a threat to the business's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
