Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution and Analysis
Introduction
Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 capabilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis has certain strengths that can be made use of to decrease the threats, conquer the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position enables the business to think about several advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining since 2008, affecting Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution as well, however the growth could be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry together with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual total earnings of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in bring in a big number of customers at a potential cost.
Together with it, the second graph which reveals the yearly development in the Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Analysis total assets, shows that the business is quite efficient in including worth to its properties through its revenues. The development in properties shows that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis concerning the distribution of overall profits of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution 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 integrate impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Help consist of the providers of the paper for releasing documents. 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 buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market segments, with a significant focus on educational publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the same period as Green Mountain Coffee Roasters Confidential Information For Negotiation With Keurig Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
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 recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the decreasing market development. For that reason, introduction of digital publishing could prove to be an instant option with low amount of threat for the company. Nevertheless, the company could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to first gathers the data related to the customer demand, the possible markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a threat to the company's long term presence, however the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
