Grameen Danone Foods Ltd A Social Business Case Study Solution and Analysis
Introduction
Grameen Danone Foods Ltd A Social Business Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing details and communication services. Significant service segments of the business include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports etc. Grameen Danone Foods Ltd A Social Business Case Study Analysis has ended up being a specialized info company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Grameen Danone Foods Ltd A Social Business Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Grameen Danone Foods Ltd A Social Business Case Study Solution has certain strengths that can be made use of to decrease the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Grameen Danone Foods Ltd A Social Business Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong financial position enables the company to consider several development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which could increase restraints for the business in implementing its development program. The weak points of Grameen Danone Foods Ltd A Social Business Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company 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 should propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Grameen Danone Foods Ltd A Social Business Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to Grameen Danone Foods Ltd A Social Business Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Grameen Danone Foods Ltd A Social Business Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be computed. The overall monetary performance of the business could be analyzed by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Grameen Danone Foods Ltd A Social Business Case Study Help is growing and the company is quite efficient in bring in a large number of clients at a possible cost.
Together with it, the 2nd graph which reveals the annual growth in the Grameen Danone Foods Ltd A Social Business Case Study Analysis total assets, reveals that the business is quite effective in adding value to its properties through its profits. The development in assets shows that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the circulation of overall profits of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the total political forces affecting Grameen Danone Foods Ltd A Social Business Case Study Solution company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Grameen Danone Foods Ltd A Social Business Case Study Analysis in specific includesthe prices 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. In addition to it, the financial policies associated with the import of books impact the total company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Grameen Danone Foods Ltd A Social Business Case Study Solution. However, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Grameen Danone Foods Ltd A Social Business Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files provided in the digital libraries on specific websites. The changing customer choices towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Grameen Danone Foods Ltd A Social Business Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Grameen Danone Foods Ltd A Social Business Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company need an instant option to avoid the decreasing industry development. Therefore, introduction of digital publishing could show to be an instant option with low quantity of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business must first gathers the information related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the company's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
