Natura Cosmeticos Sa Case Study Solution and Analysis
Introduction
Natura Cosmeticos Sa Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing info and interaction services. Significant business sections of the company consist of; books, periodicals, consultancy and circulation. The company has a large product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Natura Cosmeticos Sa Case Study Help has actually become a specialized information company and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and Natura Cosmeticos Sa Case Study Analysis in specific. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions 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 abilities of the business could be utilized 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
Natura Cosmeticos Sa Case Study Help has particular strengths that can be made use of to minimize the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Natura Cosmeticos Sa Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the business to consider several development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restrictions for the company in executing its development program. The weaknesses of Natura Cosmeticos Sa Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting Natura Cosmeticos Sa Case Study Solution as well, but the growth could be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain hazards to Natura Cosmeticos Sa Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Natura Cosmeticos Sa Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry together with presence of high competition increases the hazard of losing the customer 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 incomes of Natura Cosmeticos Sa Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a big number of consumers at a possible rate.
In addition to it, the second graph which shows the yearly growth in the Natura Cosmeticos Sa Case Study Help total assets, reveals that the company is quite effective in adding worth to its assets through its earnings. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of overall incomes of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company segments with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Natura Cosmeticos Sa Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies connected to the import of books impact the overall business at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting 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 items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Natura Cosmeticos Sa Case Study Help consists of the concerns of environmental communities over the usage 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Natura Cosmeticos Sa Case Study Help consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Natura Cosmeticos Sa Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Natura Cosmeticos Sa Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 service sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the declining industry growth. Therefore, intro of digital publishing might show to be an instant service with low quantity of danger for the business. Nevertheless, the company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to first gathers the data associated with the consumer need, the prospective markets, the government policies and the data related to the rivals provided in the market. After that, the business must decide one potential sector for its initial offering. It must collect research that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the company should go for the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term existence, but the scenario can be managed by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
