Fast Food Industry Analysis Case Study Solution and Analysis
Introduction
Fast Food Industry Analysis Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing details and interaction services. Major company sectors of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its major products include books, regulars, online media, exhibitions, research study reports etc. Fast Food Industry Analysis Case Study Analysis has become a specialized information company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Fast Food Industry Analysis Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fast Food Industry Analysis Case Study Analysis has particular strengths that can be made use of to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Fast Food Industry Analysis Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position enables the business to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restrictions for the company in executing its development program. The weak points of Fast Food Industry Analysis Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting Fast Food Industry Analysis Case Study Solution as well, but the development might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might also 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 decrease its reliance over Chinese markets by utilizing its huge funds.
Risks
The altering macro trends in the market and increasing competition in the publishing industry has actually posed specific threats to Fast Food Industry Analysis Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Fast Food Industry Analysis Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual overall revenues of Fast Food Industry Analysis Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is rather efficient in drawing in a large number of clients at a potential price.
Along with it, the second graph which shows the annual development in the Fast Food Industry Analysis Case Study Analysis total properties, reveals that the business is rather efficient in including value to its assets through its incomes. The development in assets reveals that the overall worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the offered data might be the analysis concerning the circulation 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 could move towards other service sectors with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Fast Food Industry Analysis Case Study Analysis company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out helpful materials and so on. China has the greatest population worldwide with a high population development, revealing the increasing variety of customers of the Fast Food Industry Analysis Case Study Solution. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Fast Food Industry Analysis Case Study Help includes the concerns of ecological neighborhoods over the use 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 ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files provided in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Fast Food Industry Analysis Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Fast Food Industry Analysis Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Fast Food Industry Analysis Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 business sections to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing market growth. The business could also 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 ought to initially collects the data associated with the consumer need, the possible markets, the government guidelines and the data associated with the rivals presented in the market. After that, the company ought to choose one potential segment for its preliminary offering. It must gather research study that how it could separate its digital publishing from the existing rivals' products. The steps above the business must go for the preliminary offering. The company should go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
