Milk And Money 4 Case Study Solution and Analysis
Introduction
Milk And Money 4 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting details, processing details and interaction services. Significant service sections of the company include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Milk And Money 4 Case Study Help has actually ended up being a specialized information service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Milk And Money 4 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 scenario? 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
Milk And Money 4 Case Study Help has certain strengths that can be used to reduce the threats, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Milk And Money 4 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the business to think about several advancement chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of Milk And Money 4 Case Study Help are offered 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 growth. It needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting Milk And Money 4 Case Study Solution as well, however the growth might be revived by availing certain chances presented in the market. The market chances for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment 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.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has presented certain dangers to Milk And Money 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Milk And Money 4 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Milk And Money 4 Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is quite effective in attracting a large number of consumers at a prospective price.
In addition to it, the second chart which shows the yearly development in the Milk And Money 4 Case Study Analysis total assets, reveals that the company is quite effective in adding worth to its properties through its profits. The development in properties reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the circulation of overall profits of the company. Major 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 business could move towards other organisation sectors with a prospective growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Milk And Money 4 Case Study Solution business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand 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 changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Milk And Money 4 Case Study Solution consists of the issues of environmental communities 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires 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 Design could be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the virtual libraries on particular sites. The altering customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Milk And Money 4 Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling 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 market saturation, the buyers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Milk And Money 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market sections, with a significant focus on instructional publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Milk And Money 4 Case Study Solution easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Milk And Money 4 Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market development. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially collects the information associated with the customer demand, the possible markets, the government guidelines and the data related to the rivals presented in the market. After that, the business needs to choose one possible sector for its initial offering. It needs to collect research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the business should choose the preliminary offering. The business should go for the other markets if the initial offering proves a success. 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 company's long term presence, however the circumstance can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
