The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Solution and Analysis
Introduction
The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services including; gathering details, processing information and communication services. Major business segments of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its major items include books, periodicals, online media, exhibitions, research reports etc. The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis has actually ended up being a specialized information supplier and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in basic and The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro 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 capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis has certain strengths that can be used to lower the threats, get rid of the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong financial position allows the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase restraints for the business in executing its advancement program. The weak points of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Help as well, but the growth could be revived by availing specific chances provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has postured certain hazards to The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. Nevertheless, the overall monetary efficiency of the company might be analyzed by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis is growing and the company is rather effective in attracting a large number of consumers at a possible rate.
Along with it, the second chart which reveals the annual development in the The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Help total properties, reveals that the business is quite efficient in including value to its properties through its incomes. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis concerning the distribution of overall profits of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology in addition to the rise of digital publishing might lower the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative items for the released documents is the documents provided in the virtual libraries on specific websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same period, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in numerous market sections, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Solution quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan 2 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies 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 business sections to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business need an instant option to avoid the declining industry growth. Intro of digital publishing could prove to be an immediate option with low quantity of threat for the business. However, the business could likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should initially gathers the information connected to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. After that, the business must choose one prospective segment for its preliminary offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' items. The actions above the company need to go for the preliminary offering. The business should go for the other markets if the initial offering proves a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a risk to the business's long term presence, but the circumstance can be controlled by thinking about a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
