Frozen Food Products 2 Case Study Solution and Analysis
Frozen Food Products 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing information and communication services. Major business segments of the business consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Frozen Food Products 2 Case Study Solution has actually become a specialized info provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Frozen Food Products 2 Case Study Help in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised several questions 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 business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Frozen Food Products 2 Case Study Solution has certain strengths that can be made use of to decrease the risks, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Frozen Food Products 2 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position allows the company to consider a number of development opportunities with no worry of raising fund externally.
In addition to the strengths, the company has certain weak points which could increase restraints for the business in implementing its development program. The weak points of Frozen Food Products 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
The growth of the publishing market is declining because 2008, affecting Frozen Food Products 2 Case Study Solution as well, however the development might be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise 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 minimize its reliance over Chinese markets by utilizing its large funds.
The altering macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to Frozen Food Products 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Frozen Food Products 2 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the risk of losing the consumer base.
Due to lack of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the annual total revenues of Frozen Food Products 2 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of customers at a prospective cost.
Together with it, the 2nd graph which shows the annual growth in the Frozen Food Products 2 Case Study Analysis overall properties, shows that the company is quite effective in adding value to its assets through its profits. The growth in assets reveals that the overall value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential growth to accomplish its future development goal.
PESTEL analysis might be performed to learn the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Frozen Food Products 2 Case Study Help company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Frozen Food Products 2 Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the total organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials etc. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Frozen Food Products 2 Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Frozen Food Products 2 Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the virtual libraries on particular websites. The altering consumer preferences towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal 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 also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Frozen Food Products 2 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
CMP runs in a highly competitive market 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 Frozen Food Products 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in various market sectors, with a major concentrate on instructional publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Frozen Food Products 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competitors 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 demand of its products in the market.
As the choices are shifting towards digital publishing and the company require an instant option to avoid the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to first collects the information connected to the consumer demand, the possible markets, the federal government regulations and the data related to the competitors presented in the market. After that, the business ought to choose one prospective sector for its preliminary offering. It must collect research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the company ought to go for the initial offering. The company must go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.
The growth of the publishing market is declining considering that 2008, showing a risk to the company's long term presence, however the scenario can be controlled by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.