The Body Shop 2 Case Study Solution and Analysis
Introduction
The Body Shop 2 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting info, processing details and communication services. Major business sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. The Body Shop 2 Case Study Help has actually ended up being a specialized information supplier and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and The Body Shop 2 Case Study Analysis in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of 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 used 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
The Body Shop 2 Case Study Analysis has specific strengths that can be utilized to lower the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Body Shop 2 Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position permits the business to think about numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of The Body Shop 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, impacting The Body Shop 2 Case Study Help too, however the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular hazards to The Body Shop 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of The Body Shop 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market along with presence of high competitors increases the risk of losing the customer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual total earnings of The Body Shop 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite effective in drawing in a big number of customers at a prospective rate.
In addition to it, the second chart which reveals the annual growth in the The Body Shop 2 Case Study Solution overall properties, shows that the company is rather effective in including worth to its properties through its incomes. The growth in possessions shows that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis concerning the circulation of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting 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 growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Body Shop 2 Case Study Analysis consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released files is the documents presented in the digital libraries on specific sites. The changing customer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition 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. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Body Shop 2 Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Body Shop 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a significant concentrate on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Body Shop 2 Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company need an immediate option to avoid the declining market development. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially collects the data related to the customer need, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term presence, however the scenario can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entrance in the new markets.
