Sunshine Juice Case Study Solution and Analysis
Introduction
Sunshine Juice Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and Sunshine Juice Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sunshine Juice Case Study Solution has particular strengths that can be utilized to decrease the threats, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sunshine Juice Case Study Help in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position permits the company to consider several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase constraints for the business in executing its development program. The weaknesses of Sunshine Juice Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Sunshine Juice Case Study Solution also, but the growth might be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has postured particular threats to Sunshine Juice Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Sunshine Juice Case Study Solution due to the customer shift towards virtual libraries.
• The existence 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 gain a strong consumer base by using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total incomes of Sunshine Juice Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather efficient in drawing in a big number of customers at a prospective cost.
Along with it, the 2nd chart which shows the annual growth in the Sunshine Juice Case Study Analysis total properties, reveals that the business is quite effective in including value to its properties through its earnings. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the distribution of total revenues of the company. 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 might move towards other company sectors with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is provided 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 directed by the Promotion Department of the Communist Party of China. It might be said that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading informative products and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the Sunshine Juice Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation together with the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Sunshine Juice Case Study Solution consists of the concerns 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 utilized while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on specific websites. The changing consumer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Sunshine Juice Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sunshine Juice Case Study Analysis consist of;.
• 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Sunshine Juice Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
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 brand-new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an immediate solution to avoid the decreasing industry development. For that reason, intro of digital publishing might prove to be an immediate solution with low quantity of danger for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the information related to the consumer demand, the possible markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the business ought to decide one possible segment for its preliminary offering. It should gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business need to go for the initial offering. If the initial offering shows a success, the company must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a threat to the business's long term existence, but the situation can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
