Salty Snacks Case Study Solution and Analysis
Intro
Salty Snacks Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Salty Snacks Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of 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
Salty Snacks Case Study Help has particular strengths that can be used to lower the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Salty Snacks Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase restrictions for the company in executing its advancement program. The weaknesses of Salty Snacks Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, impacting Salty Snacks Case Study Solution also, but the growth might be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually posed specific threats to Salty Snacks Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Salty Snacks Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be computed. The total monetary performance of the business might be examined by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Salty Snacks Case Study Analysis is growing and the business is quite effective in bring in a a great deal of clients at a prospective price.
In addition to it, the 2nd graph which reveals the annual growth in the Salty Snacks Case Study Help overall possessions, reveals that the company is rather efficient in including worth to its assets through its profits. The growth in assets shows that the total worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of overall earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given 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 government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting Salty Snacks Case Study Help business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative materials etc. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Salty Snacks Case Study Solution. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Salty Snacks Case Study Solution includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Salty Snacks Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Salty Snacks Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also 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
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
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 brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an instant service to avoid the declining market development. For that reason, introduction of digital publishing might show to be an immediate service with low quantity of threat for the company. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data related to the consumer demand, the prospective markets, the government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term existence, however the situation 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 immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
