Whole Foods Balancing Social Mission And Growth 2 Case Study Solution and Analysis
Intro
Whole Foods Balancing Social Mission And Growth 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Whole Foods Balancing Social Mission And Growth 2 Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis has certain strengths that can be used to lower the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong monetary position permits the business to consider a number of advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase restraints for the company in executing its development program. The weaknesses of Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis are offered 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 ought to propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, affecting Whole Foods Balancing Social Mission And Growth 2 Case Study Help too, but the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing market has posed particular hazards to Whole Foods Balancing Social Mission And Growth 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of Whole Foods Balancing Social Mission And Growth 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly overall incomes of Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of consumers at a prospective rate.
Together with it, the 2nd graph which shows the annual growth in the Whole Foods Balancing Social Mission And Growth 2 Case Study Solution total properties, shows that the business is rather efficient in adding worth to its possessions through its earnings. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data might be the analysis relating to the circulation of overall revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the business and the current 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 might have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces affecting Whole Foods Balancing Social Mission And Growth 2 Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the financial policies related to the import of books affect the total service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market 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 competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Whole Foods Balancing Social Mission And Growth 2 Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Whole Foods Balancing Social Mission And Growth 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item 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 company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate option to avoid the declining industry development. For that reason, intro of digital publishing might prove to be an instant option with low quantity of threat for the business. Nevertheless, the business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the data related to the customer need, the prospective markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business should choose one possible section for its initial offering. It must gather research study that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the company must go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a danger to the company's long term presence, however the situation can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
