Bananas B Case Study Solution and Analysis
Intro
Bananas B Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
Although, Bananas B Case Study Help has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be used 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
Bananas B Case Study Analysis has certain strengths that can be used to minimize the risks, get rid of the weak point 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 company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the business to think about a number of advancement opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Bananas B Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting Bananas B Case Study Solution too, but the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing market has presented particular threats to Bananas B Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Bananas B Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP might not be calculated. The total financial performance of the company could be evaluated by using the charts offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Bananas B Case Study Help is growing and the business is quite efficient in bring in a large number of customers at a prospective cost.
Along with it, the second graph which shows the yearly growth in the Bananas B Case Study Help total assets, shows that the business is rather effective in adding value to its assets through its earnings. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the circulation of total revenues of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sections 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 performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Bananas B Case Study Solution company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Bananas B Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the economic policies connected to the import of books affect the total company at CPM. However, China's economic conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Bananas B Case Study Analysis includes the issues of environmental neighborhoods over the usage 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 hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bananas B Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Bananas B Case Study Help include;.
• Chemical Industry 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 could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Bananas B Case Study Analysis and CIP. It is also one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the declining market development. For that reason, introduction of digital publishing could show to be an instant option with low quantity of risk for the company. The business could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business needs to first collects the information associated with the consumer need, the potential markets, the government policies and the information connected to the rivals presented in the market. After that, the business ought to choose one possible segment for its initial offering. It should collect research study that how it could differentiate its digital publishing from the existing rivals' items. The steps above the company must go for the initial offering. The company ought to go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a hazard to the company's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entrance in the new markets.
