Double E Grain Corporation Where To From Here Case Study Solution and Analysis
Introduction
Double E Grain Corporation Where To From Here Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and interaction services. Major company sectors of the company consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports etc. Double E Grain Corporation Where To From Here Case Study Help has actually become a specialized info service provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and Double E Grain Corporation Where To From Here Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Double E Grain Corporation Where To From Here Case Study Analysis has particular strengths that can be made use of to lower the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Double E Grain Corporation Where To From Here Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong monetary position permits the company to consider several advancement chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in implementing its development program. The weaknesses of Double E Grain Corporation Where To From Here Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Double E Grain Corporation Where To From Here Case Study Help as well, however the growth might be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured particular dangers to Double E Grain Corporation Where To From Here Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Double E Grain Corporation Where To From Here Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry along with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be computed. The total monetary efficiency of the business could be examined by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Double E Grain Corporation Where To From Here Case Study Help is growing and the business is quite effective in drawing in a large number of clients at a prospective price.
Together with it, the 2nd graph which reveals the annual growth in the Double E Grain Corporation Where To From Here Case Study Analysis total assets, reveals that the business is rather efficient in including worth to its possessions through its revenues. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the distribution of overall profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the company and the recent patterns in the external environment of the company. 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 mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting Double E Grain Corporation Where To From Here Case Study Solution business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Double E Grain Corporation Where To From Here Case Study Analysis consists of the concerns of ecological communities 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry 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 providers of the Double E Grain Corporation Where To From Here Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Double E Grain Corporation Where To From Here Case Study Help include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also among the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition 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 demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the decreasing industry development. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first gathers the data related to the consumer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the business's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
