Sugar Bowl 3 Case Study Solution and Analysis
Introduction
Sugar Bowl 3 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering information, processing information and communication services. Major service segments of the business consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Sugar Bowl 3 Case Study Solution has actually become a specialized info provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and Sugar Bowl 3 Case Study Solution in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sugar Bowl 3 Case Study Solution has particular strengths that can be used to minimize the threats, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Sugar Bowl 3 Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong monetary position enables the business to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weaknesses of Sugar Bowl 3 Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely 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.
Opportunities
The growth of the publishing industry is declining considering that 2008, impacting Sugar Bowl 3 Case Study Solution as well, but the development could be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client recognition 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 vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented specific risks to Sugar Bowl 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Sugar Bowl 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly overall profits of Sugar Bowl 3 Case Study Help throughout 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 large number of consumers at a prospective cost.
Along with it, the 2nd graph which shows the yearly growth in the Sugar Bowl 3 Case Study Solution total possessions, shows that the business is rather effective in adding worth to its possessions through its incomes. The growth in possessions shows that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the distribution of total profits of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect 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 Promotion Department of the Communist Party of China. It might be stated that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Sugar Bowl 3 Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Sugar Bowl 3 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the files provided in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence 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, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Sugar Bowl 3 Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Sugar Bowl 3 Case Study Solution include;.
• 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 might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage 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 utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the consumer need, the possible markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
