Grameen Danone Foods Ltd A Social Business Case Study Solution and Analysis
Grameen Danone Foods Ltd A Social Business Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing info and interaction services. Major business sectors of the company include; books, regulars, consultancy and distribution. The company has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Grameen Danone Foods Ltd A Social Business Case Study Help has actually become a specialized details service provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Grameen Danone Foods Ltd A Social Business Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of 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 used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Grameen Danone Foods Ltd A Social Business Case Study Solution has certain strengths that can be used to reduce the dangers, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Grameen Danone Foods Ltd A Social Business Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• 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 specific weaknesses which could increase constraints for the company in executing its advancement program. The weaknesses of Grameen Danone Foods Ltd A Social Business Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to prevent its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is declining given that 2008, affecting Grameen Danone Foods Ltd A Social Business Case Study Help as well, however the development might be revived by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has presented certain hazards to Grameen Danone Foods Ltd A Social Business Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Grameen Danone Foods Ltd A Social Business Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the risk of losing the customer base.
Due to lack of information, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the yearly overall profits of Grameen Danone Foods Ltd A Social Business Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a potential cost.
Along with it, the 2nd graph which reveals the annual growth in the Grameen Danone Foods Ltd A Social Business Case Study Solution overall properties, shows that the company is quite efficient in including worth to its assets through its profits. The development in possessions reveals that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of overall incomes of the company. 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 could move towards other organisation segments with a possible growth to attain its future development objective.
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Grameen Danone Foods Ltd A Social Business Case Study Help consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing industry. However, the presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Grameen Danone Foods Ltd A Social Business Case Study Solution include the providers of the paper for publishing 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 Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
CMP operates in a highly competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Grameen Danone Foods Ltd A Social Business Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Grameen Danone Foods Ltd A Social Business Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an instant service to prevent the declining industry development. For that reason, introduction of digital publishing could show to be an immediate solution with low amount of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the information related to the customer need, the prospective markets, the government policies and the information related to the competitors presented in the market. After that, the company needs to choose one potential segment for its initial offering. It must collect research study that how it could distinguish its digital publishing from the existing competitors' items. After all the steps above the business need to go for the initial offering. The business should go for the other markets if the initial offering shows a success. In this method the business would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing since 2008, revealing a threat to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.