Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Solution and Analysis
Introduction
Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing details and interaction services. Significant company sectors of the business consist of; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products include books, regulars, online media, exhibitions, research study reports and so on. Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Analysis has become a specialized information provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in general and CMP in specific. These factors consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised several 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Analysis has certain strengths that can be made use of to minimize the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong financial position enables the company to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its development program. The weaknesses of Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining since 2008, impacting Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help as well, however the growth might be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually presented specific hazards to Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be computed. Nevertheless, the general monetary performance of the company could be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Solution is growing and the business is quite effective in bring in a a great deal of clients at a prospective rate.
Along with it, the 2nd graph which shows the annual growth in the Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Solution total properties, shows that the business is quite efficient in including worth to its properties through its incomes. The growth in properties shows that the total value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis regarding the distribution of overall incomes of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a possible development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces impacting the performance of the company and the current patterns 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 considerable 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 supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP 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 integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading useful materials etc. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help. Nevertheless, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Analysis consists of the concerns of environmental communities over the usage of paper in publishing books. The paper utilized 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 regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Help consist of the providers of the paper for publishing 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 Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Snow Brand Milk Products C 2009 Remaining Challenges 2 Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk 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 sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an instant service to avoid the decreasing market growth. Intro of digital publishing might prove to be an immediate service with low amount of risk for the business. However, the company could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business ought to initially gathers the information related to the customer need, the potential markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company needs to decide one potential section for its preliminary offering. It should collect research study that how it could separate its digital publishing from the existing competitors' products. The steps above the company need to go for the preliminary offering. The company ought to go for the other markets if the preliminary offering shows a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be controlled 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 risk of failure for entrance in the brand-new markets.
