Kentucky Fried Chicken Japan Ltd Case Study Solution and Analysis
Introduction
Kentucky Fried Chicken Japan Ltd Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and Kentucky Fried Chicken Japan Ltd Case Study Help in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kentucky Fried Chicken Japan Ltd Case Study Solution has specific strengths that can be made use of to lower the risks, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Kentucky Fried Chicken Japan Ltd Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the business to consider several advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weak points which might increase restraints for the company in implementing its advancement program. The weak points of Kentucky Fried Chicken Japan Ltd Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Kentucky Fried Chicken Japan Ltd Case Study Help also, but the growth could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has positioned specific risks to Kentucky Fried Chicken Japan Ltd Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Kentucky Fried Chicken Japan Ltd Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be calculated. However, the total financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Kentucky Fried Chicken Japan Ltd Case Study Help is growing and the company is quite efficient in attracting a large number of customers at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the Kentucky Fried Chicken Japan Ltd Case Study Solution overall assets, reveals that the company is rather efficient in adding worth to its possessions through its earnings. The growth in properties shows that the overall value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information could be the analysis regarding the circulation of total incomes of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sectors with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the total political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine effect the need 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 fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Kentucky Fried Chicken Japan Ltd Case Study Solution includes the concerns of environmental neighborhoods 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Kentucky Fried Chicken Japan Ltd Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence 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 Kentucky Fried Chicken Japan Ltd Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Kentucky Fried Chicken Japan Ltd Case Study Help and CIP. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing market development. Introduction of digital publishing might prove to be an instant solution with low amount of risk for the business. Nevertheless, the company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must first collects the data related to the consumer need, the potential markets, the government regulations and the data associated with the competitors presented in the market. After that, the business needs to choose one prospective section for its initial offering. It must gather research study that how it could distinguish its digital publishing from the existing rivals' products. After all the steps above the business must go for the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
