Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution and Analysis
Introduction
Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution has certain strengths that can be made use of to lower the hazards, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the business to think about several development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restrictions for the company in executing its advancement program. The weaknesses of Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help are provided as follows;
• Despite of being a science and technology 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 needs to propose specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Analysis as well, but the growth could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large funds.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total revenues of Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is quite efficient in attracting a big number of consumers at a prospective price.
In addition to it, the 2nd chart which shows the annual development in the Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help total assets, reveals that the business is rather effective in adding worth to its assets through its incomes. The development in assets shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the distribution of overall revenues of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. It could be stated that the total political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall business at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall 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 existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Unilever And Oxfam Understanding The Impacts Of Business On Poverty A Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate service to avoid the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data related to the consumer demand, the potential markets, the federal government policies and the information associated with the competitors presented in the market. After that, the company needs to choose one potential sector for its preliminary offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' products. The steps above the business ought to go for the initial offering. The business needs to go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining given that 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the new markets.
