Silk Soy Milk A Case Study Solution and Analysis
Introduction
Silk Soy Milk A Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Silk Soy Milk A Case Study Analysis in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the business could be made use of 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
Silk Soy Milk A Case Study Help has specific strengths that can be utilized to minimize the threats, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Silk Soy Milk A Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its consumers.
• Strong financial position permits the business to consider numerous development chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which could increase restrictions for the company in executing its development program. The weaknesses of Silk Soy Milk A Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, 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 growth. It should propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Silk Soy Milk A Case Study Analysis as well, but the development could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has positioned certain risks to Silk Soy Milk A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Silk Soy Milk A Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific techniques like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general monetary efficiency of the business could be analyzed by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Silk Soy Milk A Case Study Analysis is growing and the business is rather efficient in drawing in a large number of customers at a possible price.
In addition to it, the 2nd chart which shows the annual growth in the Silk Soy Milk A Case Study Help total possessions, reveals that the company is rather efficient in including value to its possessions through its incomes. The development in properties shows that the total worth of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the given information might be the analysis regarding the circulation of total profits of the business. Huge part of the profits 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 organisation sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided 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 federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Silk Soy Milk A Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Silk Soy Milk A Case Study Solution in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the overall company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Silk Soy Milk A Case Study Help consists of the concerns of ecological 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 must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Silk Soy Milk A Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry 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 rivals of Silk Soy Milk A Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Silk Soy Milk A Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the decreasing market growth. Intro of digital publishing could show to be an instant option with low amount of risk for the business. However, the company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company must first collects the data associated with the customer demand, the potential markets, the federal government guidelines and the information connected to the competitors provided in the market. After that, the company needs to decide one prospective segment for its preliminary offering. It should gather research study that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company need to choose the preliminary offering. If the initial offering shows a success, the company needs to opt for the other markets. In this method the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a hazard to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
