Silk Soy Milk B Case Study Solution and Analysis
Introduction
Silk Soy Milk B Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Silk Soy Milk B Case Study Analysis has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Silk Soy Milk B Case Study Solution has certain strengths that can be used to lower the hazards, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Silk Soy Milk B Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position allows the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its advancement program. The weak points of Silk Soy Milk B Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, affecting Silk Soy Milk B Case Study Help as well, however the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed particular hazards to Silk Soy Milk B Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Silk Soy Milk B Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP might not be computed. The total financial performance of the business could be evaluated by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of Silk Soy Milk B Case Study Help is growing and the company is quite effective in attracting a a great deal of clients at a prospective price.
Along with it, the second graph which shows the yearly development in the Silk Soy Milk B Case Study Help total properties, shows that the company is quite effective in adding worth to its possessions through its revenues. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the circulation of total earnings of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Silk Soy Milk B Case Study Analysis business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products etc. China has the highest population in the world with a high population development, showing the increasing number of customers of the Silk Soy Milk B Case Study Solution. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Silk Soy Milk B Case Study Analysis consists of the concerns of ecological neighborhoods 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 guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the documents provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry 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 rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Silk Soy Milk B Case Study Help 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 industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Silk Soy Milk B Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks second and third in various market sections, with a significant concentrate on educational 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 could wean the marketplace share of Silk Soy Milk B Case Study Help easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
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 accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate option to prevent the declining market growth. Intro of digital publishing might prove to be an instant service with low amount of risk for the company. The business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the potential markets, the government policies and the information related to the competitors presented in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing because 2008, revealing a danger to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.
