Baldwin Bicycle Company 3 Case Study Solution and Analysis
Intro
Baldwin Bicycle Company 3 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and Baldwin Bicycle Company 3 Case Study Help in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth 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 circumstance? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Baldwin Bicycle Company 3 Case Study Solution has particular strengths that can be used to decrease the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Baldwin Bicycle Company 3 Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position allows the business to think about numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which could increase restraints for the business in implementing its advancement program. The weak points of Baldwin Bicycle Company 3 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 compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining considering that 2008, impacting Baldwin Bicycle Company 3 Case Study Solution too, but the growth might be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured specific hazards to Baldwin Bicycle Company 3 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Baldwin Bicycle Company 3 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual total incomes of Baldwin Bicycle Company 3 Case Study Analysis throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the business is quite effective in drawing in a big number of customers at a possible cost.
Together with it, the 2nd graph which shows the annual development in the Baldwin Bicycle Company 3 Case Study Solution total possessions, shows that the company is quite effective in including worth to its assets through its revenues. The growth in assets reveals that the total value of the company is also increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the given data might be the analysis concerning the distribution of overall revenues of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Baldwin Bicycle Company 3 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 needed to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could 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.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the virtual libraries on specific sites. The altering customer preferences 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 etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Baldwin Bicycle Company 3 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Baldwin Bicycle Company 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might 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 quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is likewise among the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors 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
As the preferences are shifting towards digital publishing and the company need an instant service to avoid the decreasing market growth. The company could likewise think about the growth 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 gathers the information related to the customer demand, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a threat to the business's long term presence, however the situation can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
