Frozen Food Products 2 Case Study Solution and Analysis
Frozen Food Products 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing info and interaction services. Significant organisation segments of the company consist of; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports and so on. Frozen Food Products 2 Case Study Help has actually ended up being a specialized information service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and Frozen Food Products 2 Case Study Help in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Frozen Food Products 2 Case Study Analysis has specific strengths that can be used to reduce the dangers, overcome the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Frozen Food Products 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the business to consider several development opportunities without any worry of raising fund externally.
Along with the strengths, the business has particular weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Frozen Food Products 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology 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 growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
The development of the publishing market is declining given that 2008, affecting Frozen Food Products 2 Case Study Analysis as well, but the growth could be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually presented particular dangers to Frozen Food Products 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Frozen Food Products 2 Case Study Analysis due to the customer shift towards virtual 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 acquire a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with presence of high competition increases the hazard of losing the customer base.
The business has a rather competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The general monetary efficiency of the company could be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Frozen Food Products 2 Case Study Help is growing and the company is rather effective in drawing in a large number of customers at a possible rate.
In addition to it, the 2nd graph which shows the yearly growth in the Frozen Food Products 2 Case Study Solution total properties, reveals that the company is quite efficient in including worth to its assets through its profits. The development in properties reveals that the overall worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis relating to the circulation of total revenues of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a possible development to accomplish its future development goal.
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Frozen Food Products 2 Case Study Help organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces impacting Frozen Food Products 2 Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed 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 regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the market.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also entering into the market increasing the competition 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 documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Frozen Food Products 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and second in various market sectors, with a significant concentrate on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Frozen Food Products 2 Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
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 suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an instant solution to avoid the declining industry growth. Introduction of digital publishing might prove to be an instant option with low amount of danger for the business. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to first gathers the data related to the consumer need, the prospective markets, the federal government regulations and the data connected to the rivals provided in the market. After that, the company ought to decide one potential section for its preliminary offering. It must gather research that how it might distinguish its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is declining since 2008, revealing a danger to the company's long term presence, but the situation can be managed by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.