Doug Rauch Solving The American Food Paradox Case Study Solution and Analysis
Intro
Doug Rauch Solving The American Food Paradox Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Doug Rauch Solving The American Food Paradox Case Study Solution has invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Doug Rauch Solving The American Food Paradox Case Study Analysis has particular strengths that can be made use of to minimize the threats, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Doug Rauch Solving The American Food Paradox Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weak points of Doug Rauch Solving The American Food Paradox Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining because 2008, affecting Doug Rauch Solving The American Food Paradox Case Study Solution as well, but the development could be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain dangers to Doug Rauch Solving The American Food Paradox Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Doug Rauch Solving The American Food Paradox Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total earnings of Doug Rauch Solving The American Food Paradox Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the business is quite effective in drawing in a large number of consumers at a potential rate.
Along with it, the 2nd chart which shows the yearly growth in the Doug Rauch Solving The American Food Paradox Case Study Help total assets, reveals that the business is quite effective in adding worth to its assets through its incomes. The growth in assets shows that the overall value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis regarding the distribution of total incomes of the business. 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 might move towards other company sections with a potential development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The 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 CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Doug Rauch Solving The American Food Paradox Case Study Analysis. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Doug Rauch Solving The American Food Paradox Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs 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 might be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Doug Rauch Solving The American Food Paradox Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Doug Rauch Solving The American Food Paradox Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a significant focus on academic publications. CIP functions 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 might wean the marketplace share of Doug Rauch Solving The American Food Paradox Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the business need an instant service to avoid the declining industry development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of threat for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the information related to the rivals provided in the market. If the initial offering shows a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
