Our Daily Bread Company Case Study Solution and Analysis
Introduction
Our Daily Bread Company Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Our Daily Bread Company Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Our Daily Bread Company Case Study Analysis has particular strengths that can be used to lower the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Our Daily Bread Company Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Our Daily Bread Company Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable 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 attain long term development.
Opportunities
The development of the publishing market is declining since 2008, affecting Our Daily Bread Company Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific hazards to Our Daily Bread Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Our Daily Bread Company Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the industry along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total incomes of Our Daily Bread Company Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a large number of consumers at a prospective cost.
Along with it, the 2nd graph which shows the annual growth in the Our Daily Bread Company Case Study Solution total possessions, shows that the business is rather efficient in including worth to its assets through its profits. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of total incomes of the company. 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 company segments with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Our Daily Bread Company Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general organisation at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Our Daily Bread Company Case Study Solution consists of the concerns of environmental neighborhoods 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 used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the files provided in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Our Daily Bread Company Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Our Daily Bread Company Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a large period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a major focus on instructional publications. CIP serves as a threat 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 marketplace share of Our Daily Bread Company Case Study Analysis easily 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 terms of service scale. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant solution to avoid the decreasing market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the information connected to the customer need, the prospective markets, the government guidelines and the data connected to the competitors provided in the market. After that, the business must choose one potential sector for its initial offering. It ought to gather research that how it might separate its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. If the initial offering proves a success, the business should opt for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a danger to the business's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
