The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution and Analysis
The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Help in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• 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 situation? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Analysis has certain strengths that can be used to lower the risks, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its consumers.
• Strong financial position enables the business to think about numerous development chances with no worry of raising fund externally.
Together with the strengths, the business has certain weak points which might increase restrictions for the company in implementing its advancement program. The weaknesses of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is declining given that 2008, impacting The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution also, but the growth might be revived by availing particular opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has posed specific threats to The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution due to the consumer shift towards virtual libraries.
• The existence 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 customer base by using particular strategies like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard 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 computed. The overall financial performance of the business could be analyzed by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Help is growing and the company is quite effective in bring in a large number of customers at a possible rate.
Along with it, the 2nd graph which shows the annual growth in the The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Help overall possessions, shows that the company is quite efficient in including worth to its properties through its incomes. The development in possessions shows that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis concerning the distribution of total profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a possible development to attain its future development goal.
PESTEL analysis could be conducted to learn the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the overall political forces impacting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the overall service at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Analysis includes the issues of environmental neighborhoods over the usage 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 ought to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of replacement for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution include the providers 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 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 purchasers needs high quality files at competitive rates.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in various market sections, with a significant concentrate on academic publications. CIP acts as a danger 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 marketplace share of The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Solution quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as The Wowprime Corp The Owner Of Multiple Restaurant Brands In Taiwan Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its products in the market.
As the preferences are moving towards digital publishing and the business need an immediate service to avoid the declining industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the data related to the customer need, the prospective markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a hazard to the company's long term existence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.