Monsanto Helping Farmers Feed The World Case Study Solution and Analysis
Intro
Monsanto Helping Farmers Feed The World Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing info and interaction services. Major company sectors of the company consist of; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports and so on. Monsanto Helping Farmers Feed The World Case Study Solution has actually become a specialized details company and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and Monsanto Helping Farmers Feed The World Case Study Analysis in specific. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Monsanto Helping Farmers Feed The World Case Study Help has particular strengths that can be made use of to lower the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Monsanto Helping Farmers Feed The World Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the business to think about a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its advancement program. The weaknesses of Monsanto Helping Farmers Feed The World Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, impacting Monsanto Helping Farmers Feed The World Case Study Solution as well, but the growth might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has actually postured particular risks to Monsanto Helping Farmers Feed The World Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Monsanto Helping Farmers Feed The World Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market in addition to presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be determined. However, the overall monetary efficiency of the company could be examined by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Monsanto Helping Farmers Feed The World Case Study Help is growing and the business is quite efficient in attracting a a great deal of clients at a potential cost.
In addition to it, the second graph which shows the yearly growth in the Monsanto Helping Farmers Feed The World Case Study Help total properties, shows that the business is rather effective in adding value to its assets through its earnings. The growth in assets shows that the total value of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis concerning the circulation of total revenues of the company. Huge part of the earnings 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 business segments with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces affecting Monsanto Helping Farmers Feed The World Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading helpful materials and so on. China has the highest population worldwide with a high population development, revealing the increasing variety of customers of the Monsanto Helping Farmers Feed The World Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Monsanto Helping Farmers Feed The World Case Study Solution consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Monsanto Helping Farmers Feed The World Case Study Solution consist of the providers of the paper for releasing 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.
Bargaining power of purchaser 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 costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence 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. Significant competitors of Monsanto Helping Farmers Feed The World Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant option to prevent the decreasing market growth. Introduction of digital publishing might prove to be an instant service with low amount of danger for the company. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer demand, the potential markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
