The Saffola Journey 2 Case Study Solution and Analysis
Introduction
The Saffola Journey 2 Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting info, processing info and interaction services. Major business sectors of the company include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items include books, periodicals, online media, exhibits, research study reports and so on. The Saffola Journey 2 Case Study Help has ended up being a specialized details supplier and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing industry in basic and The Saffola Journey 2 Case Study Solution in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized 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 Saffola Journey 2 Case Study Help has certain strengths that can be utilized to minimize the risks, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Saffola Journey 2 Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong financial position permits the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of The Saffola Journey 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, 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 specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting The Saffola Journey 2 Case Study Solution as well, however the development might be restored by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented specific dangers to The Saffola Journey 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of The Saffola Journey 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall earnings of The Saffola Journey 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in attracting a big number of customers at a prospective rate.
In addition to it, the second chart which shows the annual development in the The Saffola Journey 2 Case Study Solution overall properties, shows that the company is rather efficient in adding value to its possessions through its incomes. The development in properties reveals that the overall value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis concerning the circulation of total incomes of the business. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the recent patterns 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 considerable impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Saffola Journey 2 Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to evaluate the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry 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 rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Saffola Journey 2 Case Study Solution consist of the providers of the paper for releasing 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 market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Saffola Journey 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing market with an annual total 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
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business require an immediate option to prevent the declining market growth. Introduction of digital publishing could show to be an immediate option with low quantity of danger for the company. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information connected to the consumer demand, the possible markets, the federal government policies and the data connected to the competitors presented in the market. After that, the business must choose one prospective section for its preliminary offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' items. The actions above the company need to go for the preliminary offering. The company must go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining considering that 2008, showing a threat to the company's long term presence, however the circumstance can be controlled by thinking about 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 avoid the threat of failure for entrance in the new markets.
