Grameen Danone Food Solution Case Study Solution and Analysis
Introduction
Grameen Danone Food Solution Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting information, processing info and interaction services. Significant service sections of the company include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant items include books, periodicals, online media, exhibitions, research reports and so on. Grameen Danone Food Solution Case Study Analysis has actually become a specialized info supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Grameen Danone Food Solution Case Study Solution in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised a number of 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 business could be used 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
Grameen Danone Food Solution Case Study Solution has particular strengths that can be made use of to decrease the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Grameen Danone Food Solution Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the business to think about numerous development chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in implementing its advancement program. The weaknesses of Grameen Danone Food Solution Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting Grameen Danone Food Solution Case Study Solution also, but the development could be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific threats to Grameen Danone Food Solution Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Grameen Danone Food Solution Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry in addition to presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The general financial performance of the business could be analyzed by using the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Grameen Danone Food Solution Case Study Help is growing and the company is rather efficient in drawing in a large number of clients at a potential price.
In addition to it, the second graph which shows the yearly development in the Grameen Danone Food Solution Case Study Analysis overall properties, shows that the business is quite effective in including value to its possessions through its profits. The development in possessions shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the distribution of overall incomes of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the total political forces impacting Grameen Danone Food Solution Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Grameen Danone Food Solution Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Grameen Danone Food Solution Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Grameen Danone Food Solution Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant concentrate on educational publications. CIP acts 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 Grameen Danone Food Solution Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Grameen Danone Food Solution Case Study Help and CIP. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant option to avoid the decreasing market development. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the consumer demand, the prospective markets, the government regulations and the data related to the rivals provided in the market. After that, the company ought to decide one prospective section for its initial offering. It ought to collect research that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company ought to opt for the preliminary offering. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a danger to the business's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
