Sugar Bowl 4 Case Study Solution and Analysis
Sugar Bowl 4 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and Sugar Bowl 4 Case Study Solution in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous concerns 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 company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Sugar Bowl 4 Case Study Analysis has specific strengths that can be used to reduce the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sugar Bowl 4 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 produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high worth to its clients.
• Strong financial position permits the business to consider numerous development opportunities without any fear of raising fund externally.
In addition to the strengths, the business has particular weak points which could increase restraints for the business in executing its development program. The weak points of Sugar Bowl 4 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular growth strategies to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing industry is decreasing considering that 2008, impacting Sugar Bowl 4 Case Study Help as well, however the growth could be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competition in the publishing industry has actually postured certain dangers to Sugar Bowl 4 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Sugar Bowl 4 Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the threat 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, and so on
• Entryway of new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
The company has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be determined. The general monetary performance of the business might be analyzed by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Sugar Bowl 4 Case Study Solution is growing and the business is quite effective in bring in a large number of customers at a prospective price.
Along with it, the second chart which shows the yearly growth in the Sugar Bowl 4 Case Study Analysis overall properties, reveals that the business is rather efficient in adding value to its properties through its earnings. The growth in properties reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of total revenues of the company. Major part of the profits 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 company sections with a possible growth to accomplish its future advancement goal.
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the frame of mind 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 Celebration of China. Therefore, it could be said that the total political forces impacting Sugar Bowl 4 Case Study Solution organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces affecting Sugar Bowl 4 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the risk of alternative for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Sugar Bowl 4 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 needs high quality documents at competitive rates.
CMP runs in a highly competitive market with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sugar Bowl 4 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the declining market growth. The business could likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business must first collects the information associated with the consumer need, the potential markets, the government policies and the information associated with the rivals provided in the market. After that, the company should choose one potential sector for its initial offering. It needs to gather research study that how it might differentiate its digital publishing from the existing rivals' items. After all the steps above the company ought to opt for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this way the business would have the ability to execute its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, revealing a risk to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.