Southfield Packaging 3 Case Study Solution and Analysis
Introduction
Southfield Packaging 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering details, processing info and communication services. Significant company segments of the business consist of; books, periodicals, consultancy and distribution. The business has a huge item portfolio and its major products include books, regulars, online media, exhibits, research study reports etc. Southfield Packaging 3 Case Study Solution has become a specialized info supplier and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Southfield Packaging 3 Case Study Help has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be used 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
Southfield Packaging 3 Case Study Solution has certain strengths that can be made use of to lower the dangers, overcome the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Southfield Packaging 3 Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of Southfield Packaging 3 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, impacting Southfield Packaging 3 Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has positioned specific dangers to Southfield Packaging 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Southfield Packaging 3 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be determined. The overall monetary efficiency of the company might be examined by using the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Southfield Packaging 3 Case Study Solution is growing and the company is quite effective in attracting a large number of clients at a prospective cost.
Along with it, the 2nd chart which shows the annual development in the Southfield Packaging 3 Case Study Analysis overall properties, shows that the company is rather efficient in adding worth to its possessions through its incomes. The growth in assets shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis concerning the circulation of total incomes of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Southfield Packaging 3 Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market. Along with it, the financial policies associated with the import of books impact the total business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Southfield Packaging 3 Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the beauty of the publishing market China. A brief 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 possible growth in the market tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Southfield Packaging 3 Case Study Help consist of the providers of the paper for publishing files. As CMP is the largest 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 market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Southfield Packaging 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Southfield Packaging 3 Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat 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 sectors to the new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining market development. Intro of digital publishing might show to be an instant solution with low quantity of threat for the business. However, the company might also think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must first gathers the data related to the customer demand, the possible markets, the government regulations and the information related to the rivals presented in the market. If the initial offering proves a success, the company ought to go 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 industry is declining considering that 2008, showing a risk to the company's long term presence, but the circumstance can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
