Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution and Analysis
Intro
Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing info and interaction services. Major organisation sectors of the company include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution has become a specialized details company and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
Although, Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous questions 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 utilized to strive for the future advancement unceasingly? How could the business 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 Vietnam B Case Study Analysis has specific strengths that can be made use of to reduce the threats, get rid of the weak point and get 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 Vietnam B Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the business to think about numerous development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has postured specific threats to Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly overall earnings of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather efficient in attracting a big number of customers at a possible cost.
In addition to it, the second chart which shows the annual development in the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis overall assets, reveals that the company is rather effective in including value to its assets through its revenues. The development in properties shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of overall earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a potential development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the company and the current trends in the external environment of the business. A brief 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 the people about the communist ideology of the 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 general political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution includes the concerns of environmental communities 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 damaging 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 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
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 competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in various market sectors, with a significant concentrate on instructional publications. CIP serves as a hazard 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 Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant option to prevent the decreasing industry development. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company must initially gathers the data related to the consumer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, revealing a danger to the company's long term presence, however the situation can be controlled by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
