Marine Harvest Case Study Solution and Analysis
Intro
Marine Harvest Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Marine Harvest Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Marine Harvest Case Study Analysis has specific strengths that can be utilized to decrease the dangers, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Marine Harvest Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the business to consider several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Marine Harvest Case Study Analysis are given 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 highly relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Marine Harvest Case Study Help too, but the development could be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has actually presented specific dangers to Marine Harvest Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Marine Harvest Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the danger of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the yearly total revenues of Marine Harvest Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in drawing in a large number of consumers at a potential rate.
Along with it, the second graph which reveals the annual growth in the Marine Harvest Case Study Analysis overall assets, shows that the company is quite efficient in adding value to its possessions through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered information might be the analysis concerning the distribution of total earnings of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided 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 government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the overall political forces affecting Marine Harvest Case Study Analysis service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Marine Harvest Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the overall service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Marine Harvest Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Marine Harvest Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Marine Harvest Case Study Analysis include;.
• Chemical Market 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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat 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 current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining market growth. Introduction of digital publishing could show to be an instant solution with low amount of danger for the business. The company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must first collects the data connected to the customer demand, the possible markets, the government guidelines and the data associated with the competitors presented in the market. After that, the business needs to choose one prospective sector 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 actions above the business ought to choose the initial offering. If the initial offering shows a success, the company needs to choose the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a danger to the business's long term existence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
