Whole Foods The Path To 1000 Stores 2 Case Study Solution and Analysis
Introduction
Whole Foods The Path To 1000 Stores 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and Whole Foods The Path To 1000 Stores 2 Case Study Help in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company 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 The Path To 1000 Stores 2 Case Study Solution has specific strengths that can be used to lower the dangers, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Whole Foods The Path To 1000 Stores 2 Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Whole Foods The Path To 1000 Stores 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Whole Foods The Path To 1000 Stores 2 Case Study Help also, but the development could be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has actually presented particular dangers to Whole Foods The Path To 1000 Stores 2 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Whole Foods The Path To 1000 Stores 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP could not be calculated. The overall monetary performance of the business could be evaluated by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of Whole Foods The Path To 1000 Stores 2 Case Study Analysis is growing and the company is rather efficient in bring in a large number of customers at a prospective rate.
Together with it, the second chart which reveals the yearly development in the Whole Foods The Path To 1000 Stores 2 Case Study Analysis total properties, shows that the business is quite efficient in including value to its assets through its incomes. The growth in possessions reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business using the offered information could be the analysis regarding the distribution of total profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading informative products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Whole Foods The Path To 1000 Stores 2 Case Study Help. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Whole Foods The Path To 1000 Stores 2 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Whole Foods The Path To 1000 Stores 2 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Whole Foods The Path To 1000 Stores 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases similar type of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market sections, 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 concentrated on digital publishing and might wean the marketplace share of Whole Foods The Path To 1000 Stores 2 Case Study Analysis quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition 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 business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the company require an immediate service to prevent the declining market growth. The company might also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the consumer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a danger to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
