Doug Rauch Solving The American Food Paradox Case Study Solution and Analysis
Doug Rauch Solving The American Food Paradox Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing information and interaction services. Major service sections of the business include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports etc. Doug Rauch Solving The American Food Paradox Case Study Solution has ended up being a specialized information supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Doug Rauch Solving The American Food Paradox Case Study Solution has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous questions 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 company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Doug Rauch Solving The American Food Paradox Case Study Analysis has specific strengths that can be made use of to reduce the hazards, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Doug Rauch Solving The American Food Paradox Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong monetary position allows the business to consider numerous development opportunities with no fear of raising fund externally.
Together with the strengths, the company has certain weaknesses which might increase constraints for the company in implementing its advancement 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 innovation publishing company, 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 growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
The growth of the publishing market is decreasing since 2008, affecting Doug Rauch Solving The American Food Paradox Case Study Analysis as well, however the development could be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually posed specific dangers to Doug Rauch Solving The American Food Paradox Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Doug Rauch Solving The American Food Paradox Case Study Help 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 rivals can get a strong customer base by using specific techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the hazard of losing the consumer base.
Due to lack of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual overall incomes of Doug Rauch Solving The American Food Paradox Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a prospective cost.
Along with it, the second graph which reveals the annual development in the Doug Rauch Solving The American Food Paradox Case Study Analysis overall assets, reveals that the company is rather efficient in including value to its properties through its revenues. The development in properties shows that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered information could be the analysis regarding the distribution of overall earnings of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a possible growth to achieve its future development goal.
PESTEL analysis could be carried out to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting Doug Rauch Solving The American Food Paradox Case Study Solution organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative materials etc. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the Doug Rauch Solving The American Food Paradox Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Doug Rauch Solving The American Food Paradox Case Study Solution 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 disposable and the ink used while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific sites. The altering customer choices towards digital knowing increase the danger of replacement for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Doug Rauch Solving The American Food Paradox Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Doug Rauch Solving The American Food Paradox Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior focus 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.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing market development. For that reason, introduction of digital publishing might show to be an immediate solution with low quantity of risk for the business. The business could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
The growth of the publishing market is decreasing considering that 2008, showing a hazard to the business's long term existence, but the circumstance can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.