Power Water Beverages Inc 2 Case Study Solution and Analysis
Intro
Power Water Beverages Inc 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in general and Power Water Beverages Inc 2 Case Study Analysis in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Power Water Beverages Inc 2 Case Study Analysis has certain strengths that can be utilized to reduce the risks, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Power Water Beverages Inc 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the business to consider several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Power Water Beverages Inc 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting Power Water Beverages Inc 2 Case Study Help as well, however the growth might be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured certain dangers to Power Water Beverages Inc 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Power Water Beverages Inc 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total incomes of Power Water Beverages Inc 2 Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is quite efficient in attracting a large number of clients at a potential rate.
Along with it, the second graph which shows the yearly growth in the Power Water Beverages Inc 2 Case Study Analysis total properties, reveals that the company is rather efficient in adding worth to its properties through its earnings. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces impacting Power Water Beverages Inc 2 Case Study Help service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
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 general GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Power Water Beverages Inc 2 Case Study Solution includes the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Power Water Beverages Inc 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Power Water Beverages Inc 2 Case Study Solution include;.
• Chemical Industry 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 similar type of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on academic publications. CIP acts as a risk 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 Power Water Beverages Inc 2 Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 service segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant solution to avoid the decreasing industry growth. The business could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data connected to the customer demand, the potential markets, the federal government policies and the data associated with the rivals provided in the market. After that, the company ought to decide one prospective segment for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing rivals' products. The steps above the business should go for the initial offering. If the initial offering shows a success, the company should opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a danger to the business's long term presence, but the scenario can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
