The Saffola Journey Case Study Solution and Analysis
The Saffola Journey Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in general and The Saffola Journey Case Study Analysis in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
The Saffola Journey Case Study Analysis has specific strengths that can be utilized to decrease the risks, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Saffola Journey Case Study Solution in the publishing market i.e. 60 years enables the business to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the business to think about numerous development chances with no worry of raising fund externally.
Along with the strengths, the business has specific weaknesses which might increase constraints for the business in executing its development program. The weaknesses of The Saffola Journey Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining because 2008, impacting The Saffola Journey Case Study Analysis as well, however the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has presented certain dangers to The Saffola Journey Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of The Saffola Journey Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market in addition to existence of high competition increases the danger of losing the customer base.
The business has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be determined. The general monetary performance of the business could be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of The Saffola Journey Case Study Solution is growing and the company is quite efficient in bring in a a great deal of consumers at a possible price.
Along with it, the second chart which shows the yearly development in the The Saffola Journey Case Study Solution overall possessions, shows that the business is quite effective in adding worth to its possessions through its incomes. The development in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis regarding the distribution of overall incomes of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible development to achieve its future development objective.
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the The Saffola Journey Case Study Help in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the overall organisation at CPM. China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting The Saffola Journey Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats 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. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Saffola Journey Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry 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 costs.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Saffola Journey Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP publishes comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a significant concentrate on instructional publications. 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 The Saffola Journey Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first gathers the information related to the customer demand, the prospective markets, the federal government policies and the information related to the competitors presented in the market. After that, the company must choose one possible sector for its initial offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the business must opt for the preliminary offering. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.