Fresh To Table Case Study Solution and Analysis
Intro
Fresh To Table Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and interaction services. Significant company segments of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Fresh To Table Case Study Solution has ended up being a specialized details service provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Fresh To Table Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 situation? Do the long important 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
Fresh To Table Case Study Solution has certain strengths that can be made use of to lower the hazards, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Fresh To Table Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong financial position enables the business to consider numerous development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Fresh To Table Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Fresh To Table Case Study Solution as well, however the development could be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has presented particular threats to Fresh To Table Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Fresh To Table Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall incomes of Fresh To Table Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in drawing in a large number of consumers at a potential cost.
In addition to it, the second chart which reveals the yearly development in the Fresh To Table Case Study Solution total properties, reveals that the business is rather effective in including worth to its properties through its earnings. The development in assets shows that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of overall incomes of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Fresh To Table Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative materials and so on. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Fresh To Table Case Study Solution. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Fresh To Table Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding 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 Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the digital libraries on particular sites. The altering consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Fresh To Table Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Fresh To Table Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major concentrate on instructional publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Fresh To Table Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate option to avoid the decreasing industry development. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the consumer need, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a hazard to the company's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
