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Double E Grain Corporation Where To From Here Case Solution

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Double E Grain Corporation Where To From Here Case Study Solution and Analysis


Intro

Double E Grain Corporation Where To From Here Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Important Concerns

Although, Double E Grain Corporation Where To From Here Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in basic and CMP in specific. These elements include;

• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
Executive Summary
The change of the macro markets have raised several 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 capabilities of the company could be used to strive for the future development unceasingly? How could the company 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 Solution has certain strengths that can be made use of to decrease the hazards, conquer the weak point and avail the chances. Strengths of CMP are given as follows;

• The long term experience of Double E Grain Corporation Where To From Here Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong financial position enables the company to consider numerous advancement chances without any worry of raising fund externally.

Weak points

Together with the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Double E Grain Corporation Where To From Here Case Study Help are provided as follows;

• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is decreasing because 2008, impacting Double E Grain Corporation Where To From Here Case Study Solution too, but the growth could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;

• The company might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.

Hazards

The altering macro trends in the market and increasing competition in the publishing market has presented certain threats to Double E Grain Corporation Where To From Here Case Study Help consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Double E Grain Corporation Where To From Here Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the hazard of losing the client base.

Financial Analysis.
Swot Analysis
Due to lack of information, the monetary ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total revenues of Double E Grain Corporation Where To From Here Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the company is quite effective in bring in a large number of consumers at a possible price.

Together with it, the second chart which shows the yearly development in the Double E Grain Corporation Where To From Here Case Study Help overall properties, shows that the business is rather effective in adding worth to its possessions through its revenues. The growth in properties shows that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).

Another monetary analysis of the business using the provided information might be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential development to accomplish its future development objective.

PESTEL Analysis

PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal 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 could be said that the general political forces affecting Double E Grain Corporation Where To From Here Case Study Help service are high. The government policies relating to the publishing sector are also increasing with the passage of time.

Affordable.

Financial forces impacting the publishing sector in basic and the Double E Grain Corporation Where To From Here Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies related to the import of books affect the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP development and consumer income level.

Social and Demographical.

The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.

Technological.

Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Double E Grain Corporation Where To From Here Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.

Threat of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of alternative for the market.

Competitive Rivalry.

Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.

Bargaining Power of Provider.

The major suppliers of the Double E Grain Corporation Where To From Here Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.

Bargaining Power of Buyer.

Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.

Rivals Analysis.

CMP operates in a highly competitive industry with the presence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Double E Grain Corporation Where To From Here Case Study Analysis consist of;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a hazard for CMP as it could 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 current market situation.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product 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 sections to the brand-new one can lead the business to lose need of its products in the market.

Suggestions

As the preferences are moving towards digital publishing and the business need an instant option to prevent the decreasing industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information associated with the consumer demand, the possible markets, the government guidelines and the information connected to the rivals provided in the market. After that, the company ought to choose one prospective segment for its initial offering. It needs to gather research that how it could differentiate its digital publishing from the existing rivals' items. The steps above the business must go for the preliminary offering. The business ought to 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.

Conclusion

Although, the development of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.

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