Bang Olufsen Design Driven Innovation 3 Case Study Solution and Analysis
Introduction
Bang Olufsen Design Driven Innovation 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Bang Olufsen Design Driven Innovation 3 Case Study Analysis has invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement 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 situation? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bang Olufsen Design Driven Innovation 3 Case Study Help has specific strengths that can be utilized to reduce the dangers, conquer the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Bang Olufsen Design Driven Innovation 3 Case Study Solution in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong monetary position allows the company to think about numerous advancement chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Bang Olufsen Design Driven Innovation 3 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing given that 2008, impacting Bang Olufsen Design Driven Innovation 3 Case Study Help also, however the development could be restored by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually postured certain hazards to Bang Olufsen Design Driven Innovation 3 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Bang Olufsen Design Driven Innovation 3 Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be examined from the Appendix III that the annual overall profits of Bang Olufsen Design Driven Innovation 3 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in bring in a big number of customers at a prospective cost.
Together with it, the second chart which shows the annual growth in the Bang Olufsen Design Driven Innovation 3 Case Study Solution total properties, shows that the business is quite effective in including worth to its assets through its revenues. The development in properties shows that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis relating to the circulation of overall revenues of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces impacting the performance of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall 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 impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative materials etc. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the Bang Olufsen Design Driven Innovation 3 Case Study Help. However, the consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Bang Olufsen Design Driven Innovation 3 Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-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 existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released files is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the threat of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Bang Olufsen Design Driven Innovation 3 Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Bang Olufsen Design Driven Innovation 3 Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Bang Olufsen Design Driven Innovation 3 Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market development. Introduction of digital publishing could show to be an immediate option with low quantity of risk for the business. However, the company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to initially gathers the information related to the consumer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a hazard to the company's long term presence, however the circumstance can be controlled by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
