Truearth Healthy Foods Market Research For A New Product Introduction Case Study Solution and Analysis
Introduction
Truearth Healthy Foods Market Research For A New Product Introduction Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized details supplier and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Truearth Healthy Foods Market Research For A New Product Introduction Case Study Help in particular. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement 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 important experience, technical resources and the capabilities of the company could be used 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
Truearth Healthy Foods Market Research For A New Product Introduction Case Study Solution has certain strengths that can be utilized to lower the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Truearth Healthy Foods Market Research For A New Product Introduction Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong monetary position enables the business to think about several development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase constraints for the business in implementing its development program. The weak points of Truearth Healthy Foods Market Research For A New Product Introduction Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Truearth Healthy Foods Market Research For A New Product Introduction Case Study Solution as well, however the growth might be revived by availing certain opportunities provided in the market. The marketplace chances for CMP consist of;
• 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 expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific risks to Truearth Healthy Foods Market Research For A New Product Introduction Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Truearth Healthy Foods Market Research For A New Product Introduction Case Study Analysis due to the customer 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 competitors can acquire a strong consumer base by utilizing certain methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of Truearth Healthy Foods Market Research For A New Product Introduction Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a potential rate.
In addition to it, the 2nd chart which reveals the yearly growth in the Truearth Healthy Foods Market Research For A New Product Introduction Case Study Solution total possessions, reveals that the business is rather efficient in including value to its properties through its incomes. The development in properties shows that the total value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the company using the provided information might be the analysis concerning the circulation of total profits 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 business might move towards other company sectors with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the efficiency of the company and the recent trends 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 could have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. 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 standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Truearth Healthy Foods Market Research For A New Product Introduction Case Study Help includes the issues of ecological neighborhoods 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to examine the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats 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 big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the virtual libraries on specific websites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Truearth Healthy Foods Market Research For A New Product Introduction Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Truearth Healthy Foods Market Research For A New Product Introduction Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Truearth Healthy Foods Market Research For A New Product Introduction Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
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 new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors 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 together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an instant solution to avoid the declining market growth. Intro of digital publishing could prove to be an immediate solution with low amount of threat for the business. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business ought to initially gathers the information related to the consumer demand, the potential markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing since 2008, showing a danger to the business's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
