Seventh Generation The Marketside Offer 2 Case Study Solution and Analysis
Introduction
Seventh Generation The Marketside Offer 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Seventh Generation The Marketside Offer 2 Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring certain challenges to the publishing industry in general and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized 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
Seventh Generation The Marketside Offer 2 Case Study Analysis has particular strengths that can be used to decrease the risks, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Seventh Generation The Marketside Offer 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong monetary position allows the company to think about numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase restrictions for the business in executing its development program. The weaknesses of Seventh Generation The Marketside Offer 2 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Seventh Generation The Marketside Offer 2 Case Study Solution as well, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The altering macro trends in the market and increasing competition in the publishing market has positioned specific dangers to Seventh Generation The Marketside Offer 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Seventh Generation The Marketside Offer 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be examined from the Appendix III that the annual overall profits of Seventh Generation The Marketside Offer 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in drawing in a big number of clients at a potential cost.
Along with it, the 2nd graph which reveals the annual growth in the Seventh Generation The Marketside Offer 2 Case Study Solution total properties, shows that the company is rather efficient in including value to its properties through its profits. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is given 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 federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting Seventh Generation The Marketside Offer 2 Case Study Analysis business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Seventh Generation The Marketside Offer 2 Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies related to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population growth, showing the increasing number of consumers of the Seventh Generation The Marketside Offer 2 Case Study Analysis. However, the customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Seventh Generation The Marketside Offer 2 Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative items for the released documents is the files provided in the digital libraries on specific sites. The altering customer choices towards digital learning increase the threat of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Seventh Generation The Marketside Offer 2 Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Seventh Generation The Marketside Offer 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Seventh Generation The Marketside Offer 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant service to avoid the declining market growth. The company could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially gathers the data related to the customer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the business 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 threat to the business's long term presence, however the situation can be controlled by considering an advancement plan 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 risk of failure for entryway in the brand-new markets.
