Sonnen Trucking Company Case Study Solution and Analysis
Introduction
Sonnen Trucking Company 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 details provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Sonnen Trucking Company Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sonnen Trucking Company Case Study Analysis has specific strengths that can be used to minimize the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Sonnen Trucking Company Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the company to consider numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in executing its advancement program. The weak points of Sonnen Trucking Company Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Sonnen Trucking Company Case Study Solution as well, but the growth might be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has actually postured particular hazards to Sonnen Trucking Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Sonnen Trucking Company Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the annual total profits of Sonnen Trucking Company Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in attracting a big number of consumers at a potential cost.
In addition to it, the second chart which reveals the annual growth in the Sonnen Trucking Company Case Study Analysis total assets, shows that the business is rather effective in including worth to its assets through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the distribution of overall profits of the company. Huge part of the revenues 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 organisation sections with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Sonnen Trucking Company Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the overall service at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative materials etc. China has the greatest population worldwide with a high population development, showing the increasing number of customers of the Sonnen Trucking Company Case Study Help. Nevertheless, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation together with the increase of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Sonnen Trucking Company Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition 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 providers of the Sonnen Trucking Company Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Sonnen Trucking Company Case Study Help include;.
• Chemical Market 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 could wean the market share of CMP easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Sonnen Trucking Company Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-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 company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business require an instant service to avoid the decreasing market growth. For that reason, introduction of digital publishing might prove to be an immediate option with low quantity of risk for the company. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a hazard to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
