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The Body Shop Case Solution

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The Body Shop Case Study Solution and Analysis


Introduction

The Body Shop Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering info, processing info and communication services. Significant service sectors of the business consist of; books, regulars, consultancy and distribution. The company has a large item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports and so on. The Body Shop Case Study Help has become a specialized details company and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Critical Problems

CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing market in general and The Body Shop Case Study Analysis in particular. These aspects consist of;

• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
Executive Summary
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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


The Body Shop Case Study Help has certain strengths that can be used to decrease the threats, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;

• The long term experience of The Body Shop Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position enables the business to consider a number of development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the business has certain weak points which could increase restraints for the company in executing its advancement program. The weaknesses of The Body Shop Case Study Solution are provided as follows;

• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining given that 2008, impacting The Body Shop Case Study Help as well, but the development could be restored by availing specific chances provided in the market. The marketplace chances for CMP consist of;

• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.

Dangers

The changing macro trends in the market and increasing competitors in the publishing market has posed particular risks to The Body Shop Case Study Solution consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of The Body Shop Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.

Monetary Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the yearly total earnings of The Body Shop Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a possible price.

In addition to it, the second chart which reveals the annual development in the The Body Shop Case Study Solution total properties, shows that the business is rather efficient in including worth to its assets through its incomes. The development in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).

Another financial analysis of the company using the offered data could be the analysis relating to the circulation of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible development to achieve its future development objective.

PESTEL Analysis

PESTEL analysis might be conducted to find out the various external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.

Economical.

Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the customer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing variety of consumers of the The Body Shop Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer choices.

Technological.

Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces impacting The Body Shop Case Study Solution includes 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 disposable and the ink utilized while publishing ought to 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 Federal government to be gone into in the publishing market.

Industry Analysis (Porter's Five Forces Model).

Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.

Hazard of New Entrants.

Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.

Risk of Replacement.

Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the digital libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of alternative for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The existence 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, new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Provider.

The significant suppliers of the The Body Shop Case Study Help include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.

Rivals Analysis.

CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Body Shop Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks third and 2nd in various market sections, with a major focus on academic publications. CIP functions as a hazard for CMP as it might 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 Case Study Solution quickly in the present market situation.

Posts and telecommunication Press (PTP).

It was also founded in the exact same duration as The Body Shop Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the 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 company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry development. Therefore, intro of digital publishing might show to be an immediate service with low quantity 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 item portfolio, the business should initially collects the information connected to the customer demand, the prospective markets, the government policies and the data associated with the competitors provided in the market. After that, the business ought to choose one possible segment for its preliminary offering. It should collect research that how it might distinguish its digital publishing from the existing rivals' products. The actions above the company should go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this method the company would be able to execute its digital publishing program.

Conclusion

The growth of the publishing market is declining considering that 2008, showing a threat to the business's long term presence, however the circumstance can be controlled by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.

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