Spanish Vines Colombian Market Entry Case Study Solution and Analysis
Introduction
Spanish Vines Colombian Market Entry Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Spanish Vines Colombian Market Entry Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market trends and forces bring certain challenges to the publishing market in basic and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Spanish Vines Colombian Market Entry Case Study Help has specific strengths that can be used to decrease the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Spanish Vines Colombian Market Entry Case Study Solution in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of Spanish Vines Colombian Market Entry Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, 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 development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, affecting Spanish Vines Colombian Market Entry Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by using 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 reduce its dependence over Chinese markets by utilizing its vast funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned certain hazards to Spanish Vines Colombian Market Entry Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Spanish Vines Colombian Market Entry Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market along with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be determined. However, the overall monetary performance of the business might be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Spanish Vines Colombian Market Entry Case Study Solution is growing and the company is rather effective in drawing in a a great deal of consumers at a potential price.
Together with it, the second chart which shows the annual growth in the Spanish Vines Colombian Market Entry Case Study Help overall properties, shows that the company is quite effective in including worth to its assets through its profits. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the efficiency of the business and the current 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 could have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Spanish Vines Colombian Market Entry Case Study Analysis organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Spanish Vines Colombian Market Entry Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 competition for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Spanish Vines Colombian Market Entry Case Study Analysis include the providers of the paper for releasing 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 Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Spanish Vines Colombian Market Entry Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP publishes similar type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major concentrate on educational publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Spanish Vines Colombian Market Entry Case Study Solution quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present 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 concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first collects the data related to the customer demand, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, revealing a threat to the business's long term existence, however the situation can be managed by considering an advancement plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
