Whole Foods Market Where To Next Case Study Solution and Analysis
Intro
Whole Foods Market Where To Next Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Whole Foods Market Where To Next Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Whole Foods Market Where To Next Case Study Help has specific strengths that can be utilized to lower the threats, overcome the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Whole Foods Market Where To Next Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its customers.
• Strong monetary position allows the business to consider several development opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weak points which might increase restrictions for the business in implementing its development program. The weaknesses of Whole Foods Market Where To Next Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Whole Foods Market Where To Next Case Study Help as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific threats to Whole Foods Market Where To Next Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Whole Foods Market Where To Next Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry along with presence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be determined. It might be evaluated from the Appendix III that the yearly total revenues of Whole Foods Market Where To Next Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a big number of clients at a possible cost.
In addition to it, the second graph which shows the yearly development in the Whole Foods Market Where To Next Case Study Analysis total properties, reveals that the company is quite efficient in adding value to its possessions through its incomes. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis concerning the circulation of overall earnings of the company. Major part of the incomes 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 organisation sectors with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the overall political forces impacting Whole Foods Market Where To Next Case Study Help company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Whole Foods Market Where To Next Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Whole Foods Market Where To Next Case Study Analysis consists of 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 must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to bring in brand-new entrants to the publishing market. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The alternative items for the released documents is the files presented in the digital libraries on specific sites. The altering consumer choices towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry 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 competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Whole Foods Market Where To Next Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 market saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely 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. Major rivals of Whole Foods Market Where To Next Case Study Solution 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 could wean the market share of CMP easily in the existing market situation.
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 regards to organisation scale. It is likewise among the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an instant option to prevent the decreasing market development. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer need, the possible markets, the federal government policies and the data related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing given that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
