The Body Shop 2 Case Study Solution and Analysis
Intro
The Body Shop 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, The Body Shop 2 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several questions 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 company could be made use of 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
The Body Shop 2 Case Study Solution has specific strengths that can be utilized to minimize the threats, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Body Shop 2 Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the company to consider a number of development chances without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase restrictions for the business in executing its development program. The weak points of The Body Shop 2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, impacting The Body Shop 2 Case Study Help as well, but the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually presented certain threats to The Body Shop 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of The Body Shop 2 Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the annual total revenues of The Body Shop 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a big number of clients at a potential price.
In addition to it, the 2nd chart which reveals the yearly development in the The Body Shop 2 Case Study Help overall assets, reveals that the business is quite efficient in including value to its possessions through its profits. The development in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided data might 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 released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the business and the recent 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 could have a significant impact 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 Party of China. For that reason, it could be stated that the total political forces affecting The Body Shop 2 Case Study Solution business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Body Shop 2 Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze 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 Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files provided in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Body Shop 2 Case Study Solution include the suppliers of the paper for releasing 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.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Body Shop 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as The Body Shop 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business require an immediate service to avoid the declining industry growth. For that reason, introduction of digital publishing might prove to be an immediate option with low quantity of threat for the company. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first gathers the data related to the consumer need, the possible markets, the government guidelines and the data associated with the competitors provided in the market. After that, the company needs to choose one prospective section for its initial offering. It ought to collect research study that how it could distinguish its digital publishing from the existing competitors' items. After all the actions above the business ought to choose the preliminary offering. If the initial offering proves a success, the business ought to opt for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term presence, however the situation 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 development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
