Silk Soy Milk B Case Study Solution and Analysis
Intro
Silk Soy Milk B Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Silk Soy Milk B Case Study Help has invested its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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 Help has certain strengths that can be made use of to decrease the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Silk Soy Milk B Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its consumers.
• Strong monetary position permits the business to consider numerous development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Silk Soy Milk B Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, 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 reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining since 2008, affecting Silk Soy Milk B Case Study Analysis also, however the development could be revived by availing particular chances presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing market has positioned specific hazards to Silk Soy Milk B Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Silk Soy Milk B Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly overall revenues of Silk Soy Milk B Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather efficient in bring in a large number of consumers at a possible rate.
Along with it, the second chart which shows the annual development in the Silk Soy Milk B Case Study Analysis overall assets, reveals that the business is rather efficient in including worth to its possessions through its revenues. The development in possessions shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis concerning the circulation of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Improvement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Silk Soy Milk B Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on specific sites. The changing customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Silk Soy Milk B Case Study Help consist of the providers 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.
Haggling power of purchaser in the publishing industry 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 rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Silk Soy Milk B Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market segments, with a major focus 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 concentrated on digital publishing and could wean the marketplace share of Silk Soy Milk B Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as Silk Soy Milk B Case Study Help and CIP. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides 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 business sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant service to prevent the decreasing industry development. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the information associated with the customer demand, the potential markets, the government guidelines and the data associated with the rivals presented in the market. After that, the business should decide one prospective sector for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business ought to choose the preliminary offering. If the preliminary offering shows a success, the business should opt for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a danger to the company's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
