Energy Gel A New Product Introduction Case Study Solution and Analysis
Intro
Energy Gel A New Product Introduction Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Energy Gel A New Product Introduction Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Energy Gel A New Product Introduction Case Study Analysis has certain strengths that can be made use of to lower the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Energy Gel A New Product Introduction Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the business to consider several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Energy Gel A New Product Introduction Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Energy Gel A New Product Introduction Case Study Analysis as well, but the development could be revived by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has actually positioned certain risks to Energy Gel A New Product Introduction Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Energy Gel A New Product Introduction Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. The general financial efficiency of the business could be evaluated by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Energy Gel A New Product Introduction Case Study Analysis is growing and the company is quite efficient in drawing in a large number of clients at a potential price.
In addition to it, the second graph which reveals the annual development in the Energy Gel A New Product Introduction Case Study Analysis total properties, reveals that the business is rather effective in adding value to its possessions through its incomes. The development in assets reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis relating to the distribution of total profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the total political forces affecting Energy Gel A New Product Introduction Case Study Solution organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Energy Gel A New Product Introduction Case Study Analysis in specific includesthe prices of paper, the income level of consumers, 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 connected to the import of books impact the total company at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Energy Gel A New Product Introduction Case Study Help consists of the issues of ecological neighborhoods over the use 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 harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Energy Gel A New Product Introduction Case Study Analysis consist of the suppliers of the paper for publishing 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 buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number 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 Energy Gel A New Product Introduction Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in various market segments, with a significant concentrate on academic publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Energy Gel A New Product Introduction Case Study Analysis easily in the existing 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 6th in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant service to avoid the declining market growth. The company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the consumer demand, the prospective markets, the government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term presence, however the scenario can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
