Good Beer Brewing Company Case Study Solution and Analysis
Introduction
Good Beer Brewing Company Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
Although, Good Beer Brewing Company Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns 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 company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Good Beer Brewing Company Case Study Analysis has specific strengths that can be utilized to reduce the risks, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Good Beer Brewing Company Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its consumers.
• Strong financial position allows the company to think about several advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Good Beer Brewing Company Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Good Beer Brewing Company Case Study Solution as well, however the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured certain threats to Good Beer Brewing Company Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Good Beer Brewing Company Case Study Solution due to the consumer 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 get a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the hazard of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. Nevertheless, the overall monetary efficiency of the company might be analyzed by using the charts given up the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Good Beer Brewing Company Case Study Help is growing and the company is rather efficient in bring in a a great deal of clients at a prospective price.
Along with it, the second chart which shows the annual development in the Good Beer Brewing Company Case Study Analysis overall assets, shows that the business is quite efficient in including value to its properties through its profits. The growth in possessions reveals that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis relating to the distribution of total earnings of the company. Huge part of the incomes 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 organisation sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces impacting the performance of the business and the current trends 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 might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the Good Beer Brewing Company Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Good Beer Brewing Company Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to examine the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the digital libraries on particular websites. The changing consumer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Good Beer Brewing Company Case Study Solution consist of 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 purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Good Beer Brewing Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of 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 3rd and second in numerous market sectors, with a significant concentrate on educational publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Good Beer Brewing Company Case Study Help quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant option to avoid the decreasing market development. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data related to the customer demand, the potential markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
