Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Solution and Analysis
Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become 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.
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Analysis has particular strengths that can be made use of to decrease the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position enables the company to consider numerous development opportunities with no fear of raising fund externally.
Along with the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its development program. The weak points of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is decreasing since 2008, impacting Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help too, but the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain hazards to Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market along with presence of high competition increases the risk of losing the client base.
Due to absence of data, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual total incomes of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a big number of clients at a possible price.
In addition to it, the second chart which shows the yearly development in the Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help overall assets, shows that the company is rather efficient in adding value to its assets through its earnings. The development in properties shows that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided information might be the analysis relating to the circulation of overall revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a possible development to achieve its future development objective.
PESTEL analysis could be carried out to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the general political forces impacting Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact 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 must focus on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation together with the rise of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental forces affecting Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the risk of replacement for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Help consist of the suppliers of the paper for publishing 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 Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP publishes comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a major focus on educational publications. CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Online Grocery And Fresh Food Retailing Opportunities And Challenges In Ghana Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining industry growth. For that reason, intro of digital publishing might prove to be an immediate option with low quantity of risk for the company. However, the business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the consumer need, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Although, the growth of the publishing market is declining because 2008, showing a danger to the business's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.