Oriflame Sa A Case Study Solution and Analysis
Introduction
Oriflame Sa A Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and Oriflame Sa A Case Study Analysis in particular. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 situation? Do the long valuable experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Oriflame Sa A Case Study Help has certain strengths that can be utilized to lower the hazards, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Oriflame Sa A Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restrictions for the business in implementing its development program. The weak points of Oriflame Sa A Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, 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 should propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, affecting Oriflame Sa A Case Study Solution also, however the growth might be revived by availing certain opportunities presented in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented particular threats to Oriflame Sa A Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Oriflame Sa A Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be calculated. The total monetary performance of the company could be evaluated by utilizing the charts offered in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Oriflame Sa A Case Study Help is growing and the company is quite effective in bring in a large number of clients at a possible cost.
Along with it, the second chart which shows the annual growth in the Oriflame Sa A Case Study Help total properties, shows that the company is quite efficient in including worth to its properties through its incomes. The growth in properties shows that the total value of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative products and so on. China has the greatest population in the world with a high population development, revealing the increasing number of customers of the Oriflame Sa A Case Study Analysis. The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology along with the rise of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Oriflame Sa A Case Study Solution includes the concerns 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Oriflame Sa A 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Oriflame Sa A Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the present market situation.
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 sixth in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate solution to avoid the decreasing market development. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to initially gathers the information related to the consumer demand, the prospective markets, the government policies and the information related to the competitors presented in the market. After that, the business needs to decide one prospective sector for its initial offering. It needs to collect research study that how it could differentiate its digital publishing from the existing rivals' items. The steps above the company must go for the initial offering. The company ought to go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a hazard to the company's long term presence, but the scenario can be managed by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
