The Maine Food Cluster Project Case Study Solution and Analysis
Introduction
The Maine Food Cluster Project 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 details company and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing market in general and The Maine Food Cluster Project Case Study Help in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 capabilities of the company could be used 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 Maine Food Cluster Project Case Study Help has certain strengths that can be used to minimize the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Maine Food Cluster Project Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the company to consider numerous advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which could increase restrictions for the company in executing its development program. The weaknesses of The Maine Food Cluster Project Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting The Maine Food Cluster Project Case Study Solution too, however the development might be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed certain threats to The Maine Food Cluster Project Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of The Maine Food Cluster Project Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the yearly total earnings of The Maine Food Cluster Project Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a large number of clients at a potential price.
In addition to it, the 2nd chart which shows the yearly development in the The Maine Food Cluster Project Case Study Analysis total assets, shows that the business is rather effective in including worth to its assets through its earnings. The development in properties shows that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of total earnings of the company. Major 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 business sectors with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the The Maine Food Cluster Project Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall service at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might reduce the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Maine Food Cluster Project Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents provided in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Maine Food Cluster Project Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of The Maine Food Cluster Project Case Study Help consist of;.
• Chemical Market 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an instant solution to avoid the declining market development. Intro of digital publishing could prove to be an immediate service with low amount of danger for the business. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the data related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, revealing a threat to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.
