Wild Oats Sowing Vs Reaping 2 Case Study Solution and Analysis
Introduction
Wild Oats Sowing Vs Reaping 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and communication services. Significant company segments of the company include; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant items include books, periodicals, online media, exhibits, research reports etc. Wild Oats Sowing Vs Reaping 2 Case Study Analysis has become a specialized information provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Wild Oats Sowing Vs Reaping 2 Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns 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 abilities of the business could be made use of 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
Wild Oats Sowing Vs Reaping 2 Case Study Analysis has specific strengths that can be used to reduce the dangers, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Wild Oats Sowing Vs Reaping 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position permits the company to consider numerous advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase restraints for the business in executing its development program. The weak points of Wild Oats Sowing Vs Reaping 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, impacting Wild Oats Sowing Vs Reaping 2 Case Study Analysis as well, however the growth might be restored by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has actually presented specific threats to Wild Oats Sowing Vs Reaping 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Wild Oats Sowing Vs Reaping 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the market in addition to presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total profits of Wild Oats Sowing Vs Reaping 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in bring in a large number of customers at a prospective price.
Together with it, the 2nd graph which shows the yearly growth in the Wild Oats Sowing Vs Reaping 2 Case Study Help overall assets, shows that the business is quite effective in adding value to its possessions through its profits. The development in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the distribution of overall profits of the business. Huge 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 organisation sections with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Wild Oats Sowing Vs Reaping 2 Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology in addition to the increase of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Wild Oats Sowing Vs Reaping 2 Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized 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 guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Hazards 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. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Wild Oats Sowing Vs Reaping 2 Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Wild Oats Sowing Vs Reaping 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and third in different market segments, with a major concentrate on educational publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Wild Oats Sowing Vs Reaping 2 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 organisation sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an instant option to avoid the decreasing industry growth. Intro of digital publishing might show to be an instant option with low quantity of threat for the business. However, the business could 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 business must first gathers the information related to the consumer demand, the possible markets, the government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the company 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 decreasing since 2008, showing a danger to the business's long term presence, but the circumstance can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
