The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution and Analysis
Intro
The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
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 important experience, technical resources and the capabilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Help has specific strengths that can be made use of to decrease the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which might increase restrictions for the business in executing its development program. The weaknesses of The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing because 2008, affecting The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution as well, however the development might be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has posed particular dangers to The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the market together with presence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall earnings of The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution during the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a prospective cost.
In addition to it, the 2nd chart which reveals the annual development in the The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution total properties, reveals that the company is rather effective in including value to its possessions through its incomes. The development in possessions reveals that the total worth of the company is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis regarding the distribution of total incomes of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces affecting The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the overall organisation at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution includes the issues of ecological 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 must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the digital libraries on particular 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 existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal 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 Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as The Cinnamon Case Sales Negotiation Role Play A The Seller Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the decreasing market growth. Introduction of digital publishing might show to be an instant service with low quantity of danger for the company. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to first gathers the information related to the customer demand, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the business should 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 declining since 2008, revealing a risk to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
