Bank Of America 5 Case Study Solution and Analysis
Introduction
Bank Of America 5 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering details, processing information and communication services. Major business segments of the company include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research reports and so on. Bank Of America 5 Case Study Help has actually become a specialized information supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Bank Of America 5 Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 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
Bank Of America 5 Case Study Solution has certain strengths that can be utilized to reduce the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Bank Of America 5 Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the company to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase restrictions for the business in executing its development program. The weaknesses of Bank Of America 5 Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Bank Of America 5 Case Study Solution too, but the growth might be revived by availing certain chances presented in the market. The market chances for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has posed particular hazards to Bank Of America 5 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Bank Of America 5 Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market in addition to presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual total incomes of Bank Of America 5 Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in bring in a big number of customers at a possible price.
Together with it, the 2nd chart which reveals the annual growth in the Bank Of America 5 Case Study Solution overall possessions, reveals that the business is quite effective in adding value to its possessions through its profits. The growth in possessions shows that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the circulation of overall incomes of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a possible development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the various external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Bank Of America 5 Case Study Analysis in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the total service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Bank Of America 5 Case Study Help includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal.
Legal regulations 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 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the digital libraries on particular sites. The altering consumer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bank Of America 5 Case Study Help consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Bank Of America 5 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same duration, CIP releases similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in different market sections, with a significant focus on educational publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Bank Of America 5 Case Study Analysis quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the business require an instant solution to avoid the decreasing market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the customer need, the potential markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term existence, but the scenario can be managed by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
