Maple Tree Accessory Case Study Solution and Analysis
Introduction
Maple Tree Accessory Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Maple Tree Accessory Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized 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
Maple Tree Accessory Case Study Help has particular strengths that can be made use of to reduce the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Maple Tree Accessory Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position permits the business to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase restrictions for the company in implementing its advancement program. The weaknesses of Maple Tree Accessory Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Maple Tree Accessory Case Study Analysis as well, however the growth might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing market has actually posed particular threats to Maple Tree Accessory Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Maple Tree Accessory Case Study Analysis 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 get a strong customer base by using particular techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. Nevertheless, the general financial performance of the business could be examined by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Maple Tree Accessory Case Study Solution is growing and the company is quite efficient in drawing in a a great deal of consumers at a potential rate.
In addition to it, the 2nd graph which shows the annual development in the Maple Tree Accessory Case Study Analysis overall possessions, reveals that the company is rather efficient in including value to its assets through its incomes. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the circulation of overall incomes of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the performance of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Maple Tree Accessory Case Study Solution. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Maple Tree Accessory 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 disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. 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 significant suppliers of the Maple Tree Accessory Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Maple Tree Accessory Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an immediate option to avoid the decreasing market development. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the information associated with the consumer demand, the potential markets, the federal government guidelines and the data connected to the competitors provided in the market. After that, the business ought to choose one possible sector for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing rivals' products. The steps above the company must go for the preliminary offering. If the initial offering shows a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, showing a risk to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
