Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution and Analysis
Introduction
Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular obstacles to the publishing market in general and Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions 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 strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Help has specific strengths that can be utilized to lower the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the business to think about several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restrictions for the company in implementing its advancement program. The weak points of Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining because 2008, impacting Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis as well, but the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented certain risks to Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Unilever Tea B Going Beyond The Low Hanging Fruits 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 threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The total monetary performance of the company could be examined by using the charts provided in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution is growing and the business is quite effective in bring in a large number of consumers at a prospective cost.
Together with it, the second graph which shows the yearly growth in the Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Help overall properties, shows that the business is rather efficient in including value to its properties through its earnings. The development in properties shows that the overall value of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of overall profits of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a prospective development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces impacting the efficiency of the business and the current trends 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 significant impact on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution. However, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Help includes the concerns of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence 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, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 exact same period as Unilever Tea B Going Beyond The Low Hanging Fruits Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the decreasing industry growth. Introduction of digital publishing could prove to be an instant service with low quantity of threat for the business. The company might 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 first collects the information related to the customer demand, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the preliminary offering shows 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.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, showing a threat to the business's long term presence, however the situation can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
