Kraft Foods The Coffee Pod Launch A Case Study Solution and Analysis
Introduction
Kraft Foods The Coffee Pod Launch A Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in basic and Kraft Foods The Coffee Pod Launch A Case Study Solution in particular. These elements consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• 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 capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Kraft Foods The Coffee Pod Launch A Case Study Solution has specific strengths that can be used to minimize the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Kraft Foods The Coffee Pod Launch A Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high value to its customers.
• Strong financial position enables the business to think about a number of development chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its development program. The weak points of Kraft Foods The Coffee Pod Launch A Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, affecting Kraft Foods The Coffee Pod Launch A Case Study Help as well, however the growth could be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing market has presented certain hazards to Kraft Foods The Coffee Pod Launch A Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Kraft Foods The Coffee Pod Launch A Case Study Analysis due to the customer shift towards digital 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 rivals can gain a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry 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 data, the financial ratios of CMP could not be determined. The general financial efficiency of the business could be evaluated by using the charts offered in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Kraft Foods The Coffee Pod Launch A Case Study Help is growing and the business is quite efficient in attracting a a great deal of consumers at a possible rate.
In addition to it, the 2nd chart which shows the yearly growth in the Kraft Foods The Coffee Pod Launch A Case Study Analysis overall possessions, reveals that the company is quite effective in including value to its assets through its earnings. The development in possessions shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data could be the analysis regarding the circulation of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting Kraft Foods The Coffee Pod Launch A Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates 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.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Kraft Foods The Coffee Pod Launch A Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the digital libraries on specific websites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Kraft Foods The Coffee Pod Launch A Case Study Analysis include the providers of the paper for publishing files. 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.
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 market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Kraft Foods The Coffee Pod Launch A Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Kraft Foods The Coffee Pod Launch A Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth 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 brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant service to avoid the decreasing industry development. Intro of digital publishing could show to be an immediate option with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must first gathers the information connected to the customer demand, the possible markets, the government guidelines and the data related to the rivals presented in the market. After that, the business ought to choose one possible section for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing competitors' products. The steps above the company should go for the preliminary offering. If the preliminary offering shows a success, the company must opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by considering an advancement plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
