Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution and Analysis
Introduction
Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering information, processing information and interaction services. Major service segments of the business consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its major products include books, regulars, online media, exhibitions, research study reports etc. Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution has ended up being a specialized details company and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific difficulties to the publishing market in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business could be used 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
Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution has specific strengths that can be used to lower the risks, conquer the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the company to think about several advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase constraints for the business in executing its development program. The weaknesses of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, impacting Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Risks
The altering macro patterns in the market and increasing competitors in the publishing industry has postured particular dangers to Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall revenues of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Analysis during the period 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 rather effective in bring in a large number of clients at a possible cost.
Along with it, the second chart which reveals the yearly development in the Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Analysis overall assets, reveals that the company is rather effective in adding value to its possessions through its incomes. The development in assets shows that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis regarding the distribution of total earnings of the company. Major part of the revenues 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 organisation sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect 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 needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help includes the concerns of environmental neighborhoods 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 damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the digital libraries on certain sites. The changing consumer preferences towards digital knowing increase the risk of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Help include 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 provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same duration, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in numerous market sections, with a significant focus on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Pirates Booty A Tasty Snack Voyage Into South Africa Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition 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 business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. Introduction of digital publishing could prove to be an instant solution with low quantity of danger for the company. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the information related to the customer demand, the prospective markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business needs to choose one possible segment for its initial offering. It should gather research that how it could separate its digital publishing from the existing competitors' items. The steps above the business must go for the preliminary offering. The business should go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
