Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution and Analysis
Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weakness and obtain 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 market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position permits the company to consider numerous advancement opportunities without any worry of raising fund externally.
Along with the strengths, the business has certain weak points which might increase restraints for the business in executing its advancement program. The weak points of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining since 2008, affecting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis also, however the growth might be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has posed specific hazards to Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the threat of losing the consumer base.
The business has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. However, the overall financial efficiency of the company could be analyzed by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Solution is growing and the company is rather effective in drawing in a large number of clients at a possible cost.
Along with it, the second graph which shows the yearly development in the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help overall assets, reveals that the business is rather effective in adding value to its possessions through its profits. The development in assets shows that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis relating to 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 displayed in the Case Appendix V. The business might move towards other service sectors with a prospective growth to achieve its future advancement goal.
PESTEL analysis might be conducted to discover the various external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the overall organisation at CPM. However, China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and technology along with the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the risk of replacement for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competitors 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 Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a major concentrate on academic publications. CIP serves 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 marketplace share of Selling Ready To Drink Tea In Southeast Asia C2 Green Tea In Vietnam B Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• 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 need of its products in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing market development. Intro of digital publishing could prove to be an immediate service with low quantity of threat for the business. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially gathers the data related to the consumer need, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary 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.
Although, the development of the publishing industry is decreasing considering that 2008, showing a danger to the business's long term presence, but the situation can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.