The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Solution and Analysis
Intro
The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing information and interaction services. Major company sectors of the business consist of; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items include books, regulars, online media, exhibits, research study reports and so on. The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Solution has actually ended up being a specialized details provider and a large thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring particular difficulties to the publishing industry in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 capabilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis has specific strengths that can be made use of to lower the hazards, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis 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 generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the company to think about numerous development chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the company in implementing its development program. The weaknesses of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the business 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 should propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis too, but the growth might be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has posed specific threats to The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall profits of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is rather effective in drawing in a big number of customers at a potential rate.
Together with it, the 2nd chart which reveals the annual development in the The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis overall assets, shows that the business is rather efficient in including value to its properties through its earnings. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the given data could be the analysis concerning the circulation of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Help organisation 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 The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the general business at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and consumer income 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 altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on specific sites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market 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. Major competitors of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar kind of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in different market sectors, with a significant focus on academic publications. CIP serves 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 could wean the market share of The Backyard Harvest Outgrowing Hunger One Community At A Time 2 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also among the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the 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 together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an instant service to prevent the decreasing market growth. Therefore, introduction of digital publishing could show to be an instant solution with low amount of threat for the business. However, the business could also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first collects the information associated with the customer need, the potential markets, the federal government guidelines and the data associated with the rivals provided in the market. After that, the company ought to decide one possible segment for its initial offering. It should collect research that how it could separate its digital publishing from the existing competitors' products. After all the actions above the company should go for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, revealing a hazard to the business's long term presence, however the situation can be managed by thinking about an advancement plan in the future. The company might think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
