Freshtec Revolutionizing Fresh Produce Case Study Solution and Analysis
Intro
Freshtec Revolutionizing Fresh Produce Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and Freshtec Revolutionizing Fresh Produce Case Study Analysis in particular. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised several questions 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 development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Freshtec Revolutionizing Fresh Produce Case Study Help has particular strengths that can be made use of to minimize the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Freshtec Revolutionizing Fresh Produce Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong monetary position allows the business to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Freshtec Revolutionizing Fresh Produce Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly 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 development.
Opportunities
Although, the development of the publishing industry is declining because 2008, impacting Freshtec Revolutionizing Fresh Produce Case Study Help as well, however the development could be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has postured certain risks to Freshtec Revolutionizing Fresh Produce Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Freshtec Revolutionizing Fresh Produce Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total earnings of Freshtec Revolutionizing Fresh Produce Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a possible rate.
In addition to it, the 2nd chart which reveals the annual growth in the Freshtec Revolutionizing Fresh Produce Case Study Analysis overall possessions, reveals that the company is rather effective in adding worth to its properties through its profits. The growth in properties shows that the overall worth of the firm is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis relating to the circulation of overall incomes of the company. 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 business could move towards other organisation sections with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Freshtec Revolutionizing Fresh Produce Case Study Solution service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Freshtec Revolutionizing Fresh Produce Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Freshtec Revolutionizing Fresh Produce Case Study Solution includes the issues of environmental neighborhoods 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 used while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on 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 Provider.
The significant providers of the Freshtec Revolutionizing Fresh Produce Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Freshtec Revolutionizing Fresh Produce Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in various market sectors, with a significant concentrate on educational publications. CIP functions 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 marketplace share of Freshtec Revolutionizing Fresh Produce Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Freshtec Revolutionizing Fresh Produce Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
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 demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an instant option to avoid the decreasing market development. Introduction of digital publishing could prove to be an instant option with low quantity of danger for the company. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to initially collects the information related to the customer need, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a threat to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
