Relay Foods Media Mix1 Case Study Solution and Analysis
Intro
Relay Foods Media Mix1 Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing info and communication services. Significant business sectors of the business consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its major items include books, regulars, online media, exhibits, research reports and so on. Relay Foods Media Mix1 Case Study Analysis has become a specialized information service provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Relay Foods Media Mix1 Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These factors 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.
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 company could be used 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
Relay Foods Media Mix1 Case Study Analysis has certain strengths that can be used to minimize the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Relay Foods Media Mix1 Case Study Solution in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong financial position enables the company to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Relay Foods Media Mix1 Case Study Help are provided 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 growth. It must propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Relay Foods Media Mix1 Case Study Solution as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific threats to Relay Foods Media Mix1 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Relay Foods Media Mix1 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific methods like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the annual total incomes of Relay Foods Media Mix1 Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is quite effective in bring in a big number of clients at a prospective rate.
In addition to it, the 2nd chart which reveals the annual growth in the Relay Foods Media Mix1 Case Study Help total possessions, reveals that the business is quite efficient in including worth to its possessions through its earnings. The growth in possessions reveals that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the distribution of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Relay Foods Media Mix1 Case Study Help in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the overall organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Relay Foods Media Mix1 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the released files is the files presented in the digital libraries on specific websites. The changing customer choices towards digital learning 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. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Relay Foods Media Mix1 Case Study Analysis consist of the providers of the paper for releasing documents. 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.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Relay Foods Media Mix1 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks third and second in numerous market sections, with a significant concentrate on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Relay Foods Media Mix1 Case Study Help easily in the existing 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 regards to organisation scale. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry growth. Introduction of digital publishing might show to be an instant solution with low quantity of danger for the company. However, the business could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should initially gathers the information related to the consumer demand, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, showing a risk to the company's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
