Sugar Bowl 4 Case Study Solution and Analysis
Intro
Sugar Bowl 4 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in basic and Sugar Bowl 4 Case Study Solution in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation 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 utilized 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
Sugar Bowl 4 Case Study Solution has specific strengths that can be used to lower the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Sugar Bowl 4 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position permits the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weak points which might increase restraints for the company in executing its advancement program. The weaknesses of Sugar Bowl 4 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Sugar Bowl 4 Case Study Solution as well, however the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has posed particular hazards to Sugar Bowl 4 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Sugar Bowl 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be calculated. The general financial efficiency of the company could be examined by using the charts offered in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Sugar Bowl 4 Case Study Help is growing and the business is rather effective in bring in a a great deal of consumers at a prospective rate.
Along with it, the second graph which reveals the yearly development in the Sugar Bowl 4 Case Study Help overall assets, reveals that the business is quite effective in including value to its properties through its incomes. The development in assets shows that the total value of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall profits of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces impacting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Sugar Bowl 4 Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the general organisation at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Sugar Bowl 4 Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Sugar Bowl 4 Case Study Help include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Sugar Bowl 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to avoid the declining industry development. Therefore, intro of digital publishing could prove to be an instant solution with low quantity of threat for the company. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business needs to initially gathers the data connected to the consumer need, the prospective markets, the federal government guidelines and the information associated with the competitors presented in the market. After that, the company must decide one potential sector for its preliminary offering. It must collect research study that how it could separate its digital publishing from the existing rivals' products. The steps above the company need to go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a risk to the company's long term existence, however the situation can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
