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Glenorna Coffee 2 Case Study Solution and Analysis


Intro

Glenorna Coffee 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Critical Problems

CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in basic and Glenorna Coffee 2 Case Study Help in particular. These factors consist of;

• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
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 scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Glenorna Coffee 2 Case Study Help has particular strengths that can be utilized to reduce the hazards, overcome the weak point and avail the chances. Strengths of CMP are provided as follows;

• The long term experience of Glenorna Coffee 2 Case Study Solution in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position permits the business to consider numerous development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Glenorna Coffee 2 Case Study Help are offered as follows;

• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing market is decreasing given that 2008, affecting Glenorna Coffee 2 Case Study Help as well, however the growth could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;

• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.

Dangers

The altering macro patterns in the market and increasing competitors in the publishing market has posed specific risks to Glenorna Coffee 2 Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Glenorna Coffee 2 Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be computed. The overall financial efficiency of the business could be evaluated by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Glenorna Coffee 2 Case Study Help is growing and the company is quite effective in bring in a large number of clients at a potential rate.

In addition to it, the second graph which shows the yearly growth in the Glenorna Coffee 2 Case Study Solution total assets, reveals that the company is rather effective in including value to its assets through its revenues. The growth in assets shows that the overall value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).

Another monetary analysis of the business utilizing the provided data could be the analysis regarding the circulation of overall revenues of the business. Major part of the incomes of CMP originates 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 achieve its future advancement goal.

PESTEL Analysis

PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in general and the Glenorna Coffee 2 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.

Social and Demographical.

Social and demographical forces include the population development, the consumer's preferences towards checking out useful products etc. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Glenorna Coffee 2 Case Study Solution. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.

Technological.

Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing might reduce the demand for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting Glenorna Coffee 2 Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.

Legal.

Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.

Industry Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.

Threat of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.

Threat of Replacement.

Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the risk of replacement for the market.

Competitive Rivalry.

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 likewise entering into the marketplace increasing the competitors for CMP.

Bargaining Power of Provider.

The significant suppliers of the Glenorna Coffee 2 Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.

Competitors Analysis.

CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Glenorna Coffee 2 Case Study Analysis include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIP acts as a danger 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 present market situation.

Posts and telecommunication Press (PTP).

It was likewise founded in the exact same period as Glenorna Coffee 2 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose demand of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the business need an immediate option to prevent the declining industry development. The company could likewise consider the expansion program after the success of its digital publishing program.

Application

In order to present digital publishing in its product portfolio, the business needs to initially gathers the data associated with the consumer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. After that, the business ought to choose one possible section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business must go for the initial offering. The business ought to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining considering that 2008, revealing a threat to the company's long term presence, but the situation can be controlled by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.

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