Sugar Bowl 3 Case Study Solution and Analysis
Sugar Bowl 3 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Sugar Bowl 3 Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing 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 several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Sugar Bowl 3 Case Study Help has particular strengths that can be made use of to lower the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sugar Bowl 3 Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the company to think about numerous development chances with no worry of raising fund externally.
Along with the strengths, the company has specific weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Sugar Bowl 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
The growth of the publishing industry is declining since 2008, affecting Sugar Bowl 3 Case Study Analysis as well, however the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned certain risks to Sugar Bowl 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Sugar Bowl 3 Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the hazard of losing the customer base.
Due to absence of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly overall earnings of Sugar Bowl 3 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is quite efficient in bring in a big number of consumers at a potential price.
Together with it, the 2nd chart which reveals the annual development in the Sugar Bowl 3 Case Study Help overall properties, shows that the company is rather efficient in adding worth to its properties through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the circulation of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential development to achieve its future advancement goal.
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Sugar Bowl 3 Case Study Help in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books impact the general service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative materials etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Sugar Bowl 3 Case Study Solution. However, the consumer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing might lower the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces impacting Sugar Bowl 3 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of replacement for the market.
Competitive rivalry in the publishing market 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 competitors for CMP.
Bargaining Power of Provider.
The major providers of the Sugar Bowl 3 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Sugar Bowl 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Sugar Bowl 3 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competition 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.
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an immediate option to avoid the decreasing industry development. Intro of digital publishing could show to be an instant solution with low quantity of threat for the business. The company could also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to first collects the data related to the consumer demand, the possible markets, the government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
The development of the publishing market is declining given that 2008, revealing a hazard to the business's long term presence, but the scenario can be managed by considering an advancement plan in the future. The company might 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.