Bank Of America 3 Case Study Solution and Analysis
Bank Of America 3 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information company and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Bank Of America 3 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 capabilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Bank Of America 3 Case Study Solution has certain strengths that can be made use of to minimize the risks, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Bank Of America 3 Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high worth to its customers.
• Strong monetary position allows the business to consider several advancement chances with no fear of raising fund externally.
Along with the strengths, the company has certain weak points which could increase restraints for the business in executing its advancement program. The weak points of Bank Of America 3 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Although, the growth of the publishing market is decreasing since 2008, impacting Bank Of America 3 Case Study Analysis too, but the growth could be revived by availing particular chances provided in the market. The market chances for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to Bank Of America 3 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Bank Of America 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the consumer base.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall profits of Bank Of America 3 Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in bring in a large number of clients at a prospective rate.
Together with it, the second graph which shows the annual development in the Bank Of America 3 Case Study Solution overall properties, shows that the business is rather efficient in adding value to its properties through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the distribution of overall revenues of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible growth to attain its future development objective.
PESTEL analysis could be carried out to find out the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful materials and so on. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Bank Of America 3 Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Bank Of America 3 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive competition in the publishing market is high. The presence 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, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Bank Of America 3 Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Bank Of America 3 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 also established in the very same period as Bank Of America 3 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
As the choices are shifting towards digital publishing and the company need an instant option to avoid the declining industry growth. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the information connected to the consumer need, the potential markets, the federal government regulations and the information connected to the rivals presented in the market. After that, the business needs to choose one prospective sector for its initial offering. It needs to gather research that how it could distinguish its digital publishing from the existing rivals' items. The actions above the company need to go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
The development of the publishing market is decreasing because 2008, revealing a hazard to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.