The Coca Cola Company Abridged Case Study Solution and Analysis
Introduction
The Coca Cola Company Abridged Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Coca Cola Company Abridged Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation 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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Coca Cola Company Abridged Case Study Solution has specific strengths that can be made use of to minimize the threats, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Coca Cola Company Abridged Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position permits the company to think about a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase constraints for the business in executing its development program. The weak points of The Coca Cola Company Abridged Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting The Coca Cola Company Abridged Case Study Solution as well, but the growth might be revived by availing particular chances provided in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented particular threats to The Coca Cola Company Abridged Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of The Coca Cola Company Abridged Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market together with existence of high competition increases the hazard of losing the client base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. However, the total financial efficiency of the business could be evaluated by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Coca Cola Company Abridged Case Study Analysis is growing and the company is quite effective in attracting a large number of clients at a possible cost.
Together with it, the second graph which shows the annual growth in the The Coca Cola Company Abridged Case Study Solution overall possessions, reveals that the business is rather effective in including worth to its properties through its revenues. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis regarding the circulation of total earnings of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a potential development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state 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 Celebration of China. For that reason, it might be stated that the general political forces impacting The Coca Cola Company Abridged Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products etc. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the The Coca Cola Company Abridged Case Study Analysis. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Coca Cola Company Abridged Case Study Help consists of the issues of ecological communities over the usage 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 needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the risk of substitution 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 Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the The Coca Cola Company Abridged Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Coca Cola Company Abridged Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 might wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining industry development. Introduction of digital publishing might show to be an immediate option with low amount of danger for the company. However, the business might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially collects the information related to the consumer need, the possible markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business ought to decide one potential sector for its preliminary offering. It must collect research study that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company must choose the initial offering. The company needs to go for the other markets if the initial offering proves 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 since 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
