Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Solution and Analysis
Intro
Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• 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 scenario? Do the long important experience, technical resources and the capabilities 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
Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help has particular strengths that can be used to decrease the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the company to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which might increase constraints for the company in implementing its advancement program. The weaknesses of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways 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 plans to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, impacting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis as well, however the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing industry has positioned particular risks to Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market together with presence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business might be analyzed by using the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help is growing and the company is quite efficient in drawing in a large number of customers at a possible cost.
In addition to it, the second chart which reveals the annual development in the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Solution total assets, reveals that the company is rather effective in including worth to its possessions through its earnings. The development in properties shows that the total value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis regarding the distribution of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Solution business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall service at CPM. China's economic conditions are quite favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis includes the issues of environmental 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 used while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the digital libraries on specific sites. The altering customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help consist of the providers of the paper for publishing 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 Purchaser.
Bargaining power of purchaser in the publishing industry 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 documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market segments, with a major concentrate on educational publications. CIP serves as a threat 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 market share of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Indonesia C Case Study Analysis quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Preventing 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 consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate option to avoid the declining industry development. Introduction of digital publishing could show to be an instant service with low amount of danger for the company. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business needs to first collects the information related to the customer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining considering that 2008, showing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the new markets.
