Bananas B Case Study Solution and Analysis
Introduction
Bananas B Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Bananas B Case Study Analysis has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change 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 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
Bananas B Case Study Analysis has particular strengths that can be used to reduce the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Bananas B Case Study Help in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase constraints for the business in executing its advancement program. The weak points of Bananas B Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Bananas B Case Study Analysis too, but the growth could be revived by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its vast funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has postured certain threats to Bananas B Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Bananas B Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be computed. However, the total monetary performance of the company could be evaluated by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Bananas B Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a potential cost.
Along with it, the 2nd graph which reveals the yearly growth in the Bananas B Case Study Solution overall possessions, reveals that the business is rather efficient in including value to its assets through its earnings. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis relating to the distribution of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Bananas B Case Study Help company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Bananas B Case Study Help includes the issues of environmental 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 used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing industry. The presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Bananas B Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bananas B Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
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 CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Bananas B Case Study Help and CIP. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant solution to avoid the declining market growth. The business might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the data associated with the customer need, the prospective markets, the government guidelines and the information associated with the competitors presented in the market. After that, the company ought to choose one possible segment for its initial offering. It should collect research that how it could differentiate its digital publishing from the existing rivals' items. The steps above the company ought to go for the initial offering. If the initial offering shows a success, the company needs to opt for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining given that 2008, revealing a hazard to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
