Freemark Abbey Winery 2 Case Study Solution and Analysis
Introduction
Freemark Abbey Winery 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Freemark Abbey Winery 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 capabilities 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Freemark Abbey Winery 2 Case Study Solution has particular strengths that can be used to decrease the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Freemark Abbey Winery 2 Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position permits the business to consider several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Freemark Abbey Winery 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is decreasing considering that 2008, impacting Freemark Abbey Winery 2 Case Study Help too, but the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has posed particular dangers to Freemark Abbey Winery 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Freemark Abbey Winery 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be examined from the Appendix III that the annual overall revenues of Freemark Abbey Winery 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in bring in a large number of customers at a possible cost.
Together with it, the 2nd graph which shows the annual development in the Freemark Abbey Winery 2 Case Study Analysis total properties, shows that the business is quite effective in including value to its possessions through its revenues. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the given data might be the analysis relating to the distribution of total profits 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 business could move towards other business sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Freemark Abbey Winery 2 Case Study Analysis organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Freemark Abbey Winery 2 Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies associated with the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful materials and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Freemark Abbey Winery 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Freemark Abbey Winery 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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 market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Freemark Abbey Winery 2 Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly 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. Significant rivals of Freemark Abbey Winery 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Freemark Abbey Winery 2 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat 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 segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must first gathers the information connected to the consumer demand, the potential markets, the government guidelines and the information associated with the rivals provided in the market. After that, the company should choose one potential section for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business should choose the preliminary offering. If the preliminary offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
