Sweet Leaf Bath Co 3 Case Study Solution and Analysis
Introduction
Sweet Leaf Bath Co 3 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing details and communication services. Major service sectors of the company consist of; books, regulars, consultancy and distribution. The company has a large product portfolio and its major products include books, regulars, online media, exhibits, research reports etc. Sweet Leaf Bath Co 3 Case Study Analysis has ended up being a specialized details company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and Sweet Leaf Bath Co 3 Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Sweet Leaf Bath Co 3 Case Study Help has particular strengths that can be utilized to lower the dangers, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Sweet Leaf Bath Co 3 Case Study Solution in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position enables the business to think about several development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weak points of Sweet Leaf Bath Co 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Sweet Leaf Bath Co 3 Case Study Solution also, but the development could be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed particular risks to Sweet Leaf Bath Co 3 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Sweet Leaf Bath Co 3 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors 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 using certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market together with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be computed. Nevertheless, the total monetary efficiency of the company could be examined by using the charts given up the case Appendices. It could be examined from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Sweet Leaf Bath Co 3 Case Study Solution is growing and the company is rather effective in attracting a large number of customers at a prospective rate.
Along with it, the second chart which reveals the yearly growth in the Sweet Leaf Bath Co 3 Case Study Solution total possessions, reveals that the business is rather effective in including worth to its possessions through its profits. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given data could be the analysis concerning the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out helpful products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Sweet Leaf Bath Co 3 Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Sweet Leaf Bath Co 3 Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to evaluate the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute products for the published files is the documents provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Sweet Leaf Bath Co 3 Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Sweet Leaf Bath Co 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company require an instant service to prevent the decreasing market growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business ought to initially gathers the data associated with the customer need, the potential markets, the federal government regulations and the data associated with the rivals presented in the market. After that, the company ought to choose one prospective segment for its preliminary offering. It ought to gather research that how it could differentiate its digital publishing from the existing competitors' items. The actions above the company must go for the initial offering. If the preliminary offering proves a success, the company needs to opt for the other markets. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, revealing a threat to the company's long term presence, however the scenario can be controlled by thinking about an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
