Whole Foods Acquires Wild Oats A 2 Case Study Solution and Analysis
Introduction
Whole Foods Acquires Wild Oats A 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing information and communication services. Major company segments of the company consist of; books, regulars, consultancy and circulation. The company has a large product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. Whole Foods Acquires Wild Oats A 2 Case Study Solution has become a specialized info company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring specific challenges to the publishing market in basic and Whole Foods Acquires Wild Oats A 2 Case Study Solution in specific. These aspects include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised several 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 business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whole Foods Acquires Wild Oats A 2 Case Study Help has particular strengths that can be utilized to minimize the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Whole Foods Acquires Wild Oats A 2 Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the business to consider numerous development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Whole Foods Acquires Wild Oats A 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Whole Foods Acquires Wild Oats A 2 Case Study Analysis as well, however the development might be restored by availing specific chances presented in the market. The market opportunities 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 reliance over Chinese markets by using its large financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has presented certain threats to Whole Foods Acquires Wild Oats A 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Whole Foods Acquires Wild Oats A 2 Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the yearly overall profits of Whole Foods Acquires Wild Oats A 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a possible cost.
In addition to it, the second chart which reveals the annual growth in the Whole Foods Acquires Wild Oats A 2 Case Study Solution total possessions, reveals that the business is rather efficient in adding value to its assets through its incomes. The development in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It might be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Whole Foods Acquires Wild Oats A 2 Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books impact the overall company at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out useful products etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Whole Foods Acquires Wild Oats A 2 Case Study Help. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Whole Foods Acquires Wild Oats A 2 Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Market. The replacement items for the released files is the files provided in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Whole Foods Acquires Wild Oats A 2 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Whole Foods Acquires Wild Oats A 2 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 period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sectors, with a major concentrate on educational publications. CIP acts as a hazard 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 market share of Whole Foods Acquires Wild Oats A 2 Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Whole Foods Acquires Wild Oats A 2 Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 sections to the new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant service to avoid the decreasing market growth. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company should first collects the data associated with the consumer demand, the prospective markets, the federal government policies and the information related to the competitors presented in the market. After that, the company should choose one possible segment for its preliminary offering. It should collect research study that how it might distinguish its digital publishing from the existing competitors' products. The steps above the company need to go for the preliminary offering. If the preliminary offering shows a success, the company needs to opt for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
