Red Lobster 3 Case Study Solution and Analysis
Red Lobster 3 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info company and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Red Lobster 3 Case Study Analysis has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific difficulties to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Red Lobster 3 Case Study Solution has specific strengths that can be utilized to lower the risks, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Red Lobster 3 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong monetary position enables the business to consider numerous development chances without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which might increase constraints for the business in implementing its development program. The weaknesses of Red Lobster 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is decreasing given that 2008, affecting Red Lobster 3 Case Study Analysis also, but the growth could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competition in the publishing market has presented certain threats to Red Lobster 3 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Red Lobster 3 Case Study Help due to the consumer shift towards digital 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 rivals can get a strong customer base by using particular strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall profits of Red Lobster 3 Case Study Help during the duration 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 rather effective in attracting a large number of consumers at a prospective rate.
In addition to it, the second graph which reveals the yearly growth in the Red Lobster 3 Case Study Solution total properties, reveals that the company is quite effective in adding value to its possessions through its profits. The development in assets reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis concerning the distribution of overall profits of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a potential growth to achieve its future advancement goal.
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
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 general GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces impacting Red Lobster 3 Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the documents presented in the digital libraries on specific sites. The changing consumer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive rivalry 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 rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Red Lobster 3 Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
CMP operates in an extremely 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 competitors of Red Lobster 3 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Red Lobster 3 Case Study Solution and CIP. It is also one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company need an instant service to avoid the declining industry development. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company should initially collects the information connected to the customer demand, the prospective markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the business needs to decide one possible sector for its initial offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company need to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
The growth of the publishing industry is declining since 2008, showing a danger to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.