Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Solution and Analysis
Intro
Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting information, processing info and interaction services. Major service sections of the company include; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its major items consist of books, regulars, online media, exhibits, research study reports etc. Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help has ended up being a specialized details company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement 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 valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Analysis has specific strengths that can be made use of to reduce the threats, overcome the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong financial position permits the company to consider numerous development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Solution too, however the development might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned particular threats to Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. Nevertheless, the general monetary efficiency of the business might be evaluated by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Analysis is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
Along with it, the 2nd chart which shows the annual growth in the Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help total properties, reveals that the business is quite effective in including worth to its properties through its revenues. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of total incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help include the suppliers of the paper for releasing 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 buyer in the publishing market 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 documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Souk El Tayeb The Good Food Market In Lebanon 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections 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 business along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining industry growth. Intro of digital publishing might show to be an immediate option with low quantity of threat for the company. The business could also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the data related to the customer demand, the prospective markets, the government guidelines and the data related to the competitors provided in the market. After that, the company must choose one potential segment for its preliminary offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the business must opt for the initial offering. If the preliminary offering shows a success, the business ought to choose the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The business 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 entryway in the brand-new markets.
