Mother Earth Great Design Great Values Case Study Solution and Analysis
Introduction
Mother Earth Great Design Great Values Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Mother Earth Great Design Great Values Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Mother Earth Great Design Great Values Case Study Help has specific strengths that can be utilized to reduce the threats, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Mother Earth Great Design Great Values Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong financial position allows the business to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the business in executing its advancement program. The weak points of Mother Earth Great Design Great Values Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing given that 2008, impacting Mother Earth Great Design Great Values Case Study Solution as well, but the development might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has posed certain dangers to Mother Earth Great Design Great Values Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Mother Earth Great Design Great Values Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be computed. Nevertheless, the overall monetary performance of the company could be evaluated by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Mother Earth Great Design Great Values Case Study Analysis is growing and the company is rather efficient in attracting a large number of customers at a possible rate.
Together with it, the second chart which reveals the yearly growth in the Mother Earth Great Design Great Values Case Study Solution overall properties, shows that the business is quite efficient in adding value to its assets through its earnings. The growth in properties reveals that the total value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data might be the analysis concerning the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting Mother Earth Great Design Great Values Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Mother Earth Great Design Great Values Case Study Help in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books impact the overall service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative products etc. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the Mother Earth Great Design Great Values Case Study Solution. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Mother Earth Great Design Great Values Case Study Help includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable 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 Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing industry China. A quick 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 potential growth in the industry tends to bring in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on particular sites. The changing customer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Mother Earth Great Design Great Values Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Mother Earth Great Design Great Values Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could 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 current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the popular players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing 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 new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business ought to initially gathers the information associated with the customer need, the possible markets, the government guidelines and the information associated with the rivals provided in the market. After that, the company should decide one potential section for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' items. 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 proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a danger to the company's long term presence, but the situation can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
