Sugar Bowl Case Study Solution and Analysis
Introduction
Sugar Bowl Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing info and communication services. Major organisation sections of the business include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. Sugar Bowl Case Study Analysis has actually ended up being a specialized info provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Sugar Bowl Case Study Analysis in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 valuable experience, technical resources and the capabilities of the company 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 Case Study Analysis has particular strengths that can be made use of to minimize the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Sugar Bowl Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position enables the company to consider several development opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Sugar Bowl Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting Sugar Bowl Case Study Solution as well, but the development could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has posed certain dangers to Sugar Bowl Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Sugar Bowl Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the yearly total earnings of Sugar Bowl Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather effective in bring in a large number of customers at a potential cost.
In addition to it, the second chart which shows the annual growth in the Sugar Bowl Case Study Analysis total assets, shows that the business is quite efficient in including worth to its properties through its revenues. The development in assets shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of overall profits of the company. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sectors with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the different external forces impacting the efficiency of the company and the recent patterns 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 frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Sugar Bowl Case Study Help in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the total service at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful materials and so on. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Sugar Bowl Case Study Help. The customer choices are moving towards digital publishing rather than 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 improvement in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Sugar Bowl Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used 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.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 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 Design could be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital learning increase the hazard of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Sugar Bowl Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Sugar Bowl Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a significant concentrate on academic publications. CIP functions as a hazard 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 Sugar Bowl Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Sugar Bowl Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the decreasing market development. The business could likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should first collects the data associated with the consumer demand, the potential markets, the government guidelines and the information related to the competitors provided in the market. After that, the business ought to decide one potential sector for its initial offering. It must collect research that how it might distinguish its digital publishing from the existing competitors' items. After all the steps above the company ought to choose the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
