Whole Foods Market Inc Expansion In Canada Case Study Solution and Analysis
Intro
Whole Foods Market Inc Expansion In Canada Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Whole Foods Market Inc Expansion In Canada Case Study Solution has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whole Foods Market Inc Expansion In Canada Case Study Analysis has certain strengths that can be made use of to reduce the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Whole Foods Market Inc Expansion In Canada Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the business to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weak points which might increase restraints for the business in executing its advancement program. The weak points of Whole Foods Market Inc Expansion In Canada Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Whole Foods Market Inc Expansion In Canada Case Study Help as well, however the growth might be restored by availing particular chances provided in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has presented certain dangers to Whole Foods Market Inc Expansion In Canada Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Whole Foods Market Inc Expansion In Canada Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total earnings of Whole Foods Market Inc Expansion In Canada Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a large number of consumers at a potential price.
Together with it, the 2nd chart which shows the annual development in the Whole Foods Market Inc Expansion In Canada Case Study Solution total possessions, shows that the company is rather efficient in adding value to its possessions through its revenues. The growth in assets reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the given data could be the analysis concerning the circulation of total revenues of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP company are high. The federal 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 CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Whole Foods Market Inc Expansion In Canada Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on specific sites. The altering customer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers 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 likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Whole Foods Market Inc Expansion In Canada Case Study Help include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Whole Foods Market Inc Expansion In Canada Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same duration, CIP releases comparable type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market sectors, with a major concentrate on instructional publications. 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 Whole Foods Market Inc Expansion In Canada Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise among the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market development. Introduction of digital publishing might show to be an immediate service with low quantity of danger for the business. However, the business could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business should initially collects the information related to the customer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining because 2008, showing a danger to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
