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Our Daily Bread Company Case Study Solution and Analysis


Intro

Our Daily Bread Company Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting details, processing info and interaction services. Major organisation segments of the business include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant items include books, regulars, online media, exhibits, research study reports and so on. Our Daily Bread Company Case Study Analysis 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.

Critical Concerns

CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and Our Daily Bread Company Case Study Help in specific. These aspects consist of;

• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
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 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


Our Daily Bread Company Case Study Solution has certain strengths that can be made use of to lower the threats, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;

• The long term experience of Our Daily Bread Company Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the business to consider numerous advancement chances with no worry of raising fund externally.

Weaknesses

Together with the strengths, the company has particular weak points which might increase restrictions for the business in executing its advancement program. The weak points of Our Daily Bread Company Case Study Solution are given as follows;

• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is decreasing since 2008, affecting Our Daily Bread Company Case Study Help as well, but the growth could be revived by availing certain chances provided in the market. The marketplace chances for CMP consist of;

• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.

Dangers

The changing macro trends in the market and increasing competitors in the publishing market has positioned particular risks to Our Daily Bread Company Case Study Solution consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Our Daily Bread Company Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the danger of losing the consumer base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the financial ratios of CMP could not be calculated. It might be examined from the Appendix III that the yearly overall revenues of Our Daily Bread Company Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a big number of clients at a potential cost.

Together with it, the second chart which shows the yearly development in the Our Daily Bread Company Case Study Analysis overall properties, reveals that the company is rather efficient in adding worth to its possessions through its earnings. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).

Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall incomes of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sectors with a prospective growth to accomplish its future advancement goal.

PESTEL Analysis

PESTEL analysis could be conducted to discover the various external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.

Economical.

Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market.

Social and Demographical.

The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer choices.

Technological.

Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces affecting Our Daily Bread Company Case Study Solution consists of the issues of ecological 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 ought to not be hazardous for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal 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 analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.

Hazard of New Entrants.

Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.

Danger of Substitution.

Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the danger of alternative for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant suppliers of the Our Daily Bread Company Case Study Analysis include the providers of the paper for publishing files. 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 Buyer.

Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.

Rivals Analysis.

CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Our Daily Bread Company Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a hazard for CMP as it might 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 existing market situation.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.

Recommendations

As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the declining market growth. The company might also consider the expansion program after the success of its digital publishing program.

Execution

In order to introduce digital publishing in its item portfolio, the business must first collects the data related to the customer need, the possible markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial 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.

Conclusion

Although, the growth of the publishing market is decreasing because 2008, revealing a danger to the company's long term presence, however the circumstance can be controlled by thinking about a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.

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