The Saffola Journey Case Study Solution and Analysis
Intro
The Saffola Journey Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering details, processing details and communication services. Significant organisation sections of the company consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its significant products consist of books, regulars, online media, exhibits, research reports and so on. The Saffola Journey Case Study Help has actually ended up being a specialized information provider and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Saffola Journey Case Study Solution has invested 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 CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 business could be made use of 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 Saffola Journey Case Study Analysis has certain strengths that can be utilized to decrease the dangers, conquer the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Saffola Journey Case Study Analysis in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position permits the company to consider numerous development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of The Saffola Journey Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing because 2008, impacting The Saffola Journey Case Study Analysis as well, but the growth might be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific dangers to The Saffola Journey Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of The Saffola Journey Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. The general monetary efficiency of the business might be evaluated by using the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Saffola Journey Case Study Analysis is growing and the business is quite efficient in bring in a large number of consumers at a potential price.
Together with it, the 2nd chart which reveals the annual growth in the The Saffola Journey Case Study Help total properties, shows that the business is rather effective in adding value to its properties through its revenues. The development in properties reveals that the overall value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of total earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting The Saffola Journey Case Study Analysis consists of the concerns of ecological communities 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 utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence 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. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Saffola Journey Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier 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 buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. However, 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 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks second and third in various market sections, with a major concentrate on educational publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of The Saffola Journey Case Study Analysis easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as The Saffola Journey Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition 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 demand of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to avoid the decreasing market development. The business might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to initially collects the information related to the consumer need, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term existence, but the situation can be controlled by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.
