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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 Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.

Crucial Issues

CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and The Body Shop Case Study Help in specific. These aspects include;

• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
Executive Summary
The improvement 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 abilities of the business could be made use of to strive for 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 Case Study Solution has specific strengths that can be made use of to lower the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;

• The long term experience of The Body Shop Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position allows the company to think about numerous development opportunities without any fear of raising fund externally.

Weak points

In addition to the strengths, the company has certain weaknesses which could increase restrictions 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 compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth plans to avoid its reliance over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining since 2008, impacting The Body Shop Case Study Analysis as well, however the growth could be revived by availing specific chances presented in the market. The market chances for CMP consist of;

• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.

Risks

The altering macro trends in the market and increasing competition in the publishing market has actually postured specific threats to The Body Shop Case Study Solution consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Body Shop Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal 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 certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the market together with presence of high competition increases the risk of losing the customer base.

Financial Analysis.
Swot Analysis
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be computed. The general financial performance of the company might be analyzed by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Body Shop Case Study Analysis is growing and the company is rather effective in drawing in a a great deal of clients at a potential cost.

Together with it, the 2nd graph which reveals the annual growth in the The Body Shop Case Study Analysis overall assets, shows that the business is quite efficient in adding value to its assets through its incomes. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).

Another financial analysis of the business using the offered information might be the analysis concerning the distribution of overall revenues of the company. Huge 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 company could move towards other service sections with a possible growth to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis might be conducted to discover the various external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces impacting The Body Shop Case Study Analysis organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the The Body Shop Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.

Social and Demographical.

Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials etc. China has the highest population in the world with a high population development, showing the increasing variety of customers of the The Body Shop Case Study Help. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer choices.

Technological.

Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting The Body Shop Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs 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 approved initially by the Government to be entered in the publishing market.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.

Risk of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.

Danger of Replacement.

Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer choices towards digital knowing increase the hazard of replacement for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The major suppliers of the The Body Shop Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Haggling 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 market saturation, the purchasers needs high quality files at competitive prices.

Rivals Analysis.

CMP runs in an extremely competitive market with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Body Shop Case Study Analysis consist of;.

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

Chemical Industry Press (CIP).

CIPis among the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in various market sections, with a major concentrate on academic publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Body Shop Case Study Solution quickly in the existing market circumstance.

Posts and telecommunication Press (PTP).

It was also founded in the very same duration as The Body Shop Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual overall incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in expansion.
• Danger 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 capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.

Recommendations

With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining market development. Introduction of digital publishing could prove to be an instant option with low amount of threat for the business. The business might also consider the expansion program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its product portfolio, the business should first gathers the data related to the customer demand, the possible markets, the government regulations and the data related to the competitors presented in the market. After that, the business should decide one potential segment for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the business should opt for the preliminary offering. If the initial offering shows a success, the business should go for the other markets. In this way the company would have the ability to execute its digital publishing program.

Conclusion

The growth of the publishing market is declining considering that 2008, showing a danger to the business's long term existence, however the scenario can be controlled by considering an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.

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