Sugar Bowl 5 Case Study Solution and Analysis
Introduction
Sugar Bowl 5 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and Sugar Bowl 5 Case Study Help in specific. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sugar Bowl 5 Case Study Analysis has particular strengths that can be used to minimize the hazards, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Sugar Bowl 5 Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong monetary position allows the business to consider several development chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Sugar Bowl 5 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining since 2008, affecting Sugar Bowl 5 Case Study Analysis as well, but the growth might be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain hazards to Sugar Bowl 5 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Sugar Bowl 5 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP could not be computed. However, the total financial efficiency of the company might be analyzed by utilizing the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Sugar Bowl 5 Case Study Analysis is growing and the company is quite effective in attracting a large number of consumers at a potential price.
Together with it, the second chart which shows the yearly growth in the Sugar Bowl 5 Case Study Solution overall assets, reveals that the company is rather efficient in adding worth to its properties through its profits. The development in properties shows that the total value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis concerning the circulation of total profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation segments with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces affecting the performance 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 might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Sugar Bowl 5 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Sugar Bowl 5 Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful products and so on. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Sugar Bowl 5 Case Study Help. However, the consumer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Enhancement of science and innovation together with the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Sugar Bowl 5 Case Study Help includes the issues of ecological communities over the usage 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 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 Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the virtual libraries on specific websites. The altering customer preferences towards digital knowing increase the threat of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence 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. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Sugar Bowl 5 Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Sugar Bowl 5 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 established in the exact same period as Sugar Bowl 5 Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining market development. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must initially gathers the information related to the consumer demand, the prospective markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a hazard to the company's long term existence, however the scenario can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
