Maple Leaf Simply Fresh B Case Study Solution and Analysis
Introduction
Maple Leaf Simply Fresh B Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing info and communication services. Major business segments of the company consist of; books, regulars, consultancy and circulation. The business has a huge product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports etc. Maple Leaf Simply Fresh B Case Study Help has ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Maple Leaf Simply Fresh B Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Maple Leaf Simply Fresh B Case Study Solution has certain strengths that can be utilized to decrease the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Maple Leaf Simply Fresh B Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the company to consider several development chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which could increase restrictions for the business in executing its development program. The weaknesses of Maple Leaf Simply Fresh B Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Maple Leaf Simply Fresh B Case Study Solution as well, however the development could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The business 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 competition in the publishing market has presented particular dangers to Maple Leaf Simply Fresh B Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Maple Leaf Simply Fresh B Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with existence of high competitors increases the threat of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be computed. The overall monetary performance of the business might be examined by utilizing the graphs given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of Maple Leaf Simply Fresh B Case Study Help is growing and the business is rather effective in attracting a a great deal of customers at a possible rate.
In addition to it, the 2nd graph which reveals the yearly development in the Maple Leaf Simply Fresh B Case Study Solution overall assets, shows that the company is rather efficient in adding value to its properties through its earnings. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis concerning the circulation of total revenues of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Maple Leaf Simply Fresh B Case Study Analysis company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population in the world with a high population growth, showing the increasing number of customers of the Maple Leaf Simply Fresh B Case Study Analysis. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Maple Leaf Simply Fresh B Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Maple Leaf Simply Fresh B Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Maple Leaf Simply Fresh B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible 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 introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company require an instant service to avoid the decreasing industry growth. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should first gathers the data connected to the consumer need, the possible markets, the government regulations and the information related to the competitors provided in the market. After that, the business needs to decide one possible sector for its preliminary offering. It should collect research study that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company need to go for the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a hazard to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
