Bank Of America Merrill Lynch Case Study Solution and Analysis
Introduction
Bank Of America Merrill Lynch Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Bank Of America Merrill Lynch Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Bank Of America Merrill Lynch Case Study Help has certain strengths that can be utilized to lower the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Bank Of America Merrill Lynch Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the business to consider a number of advancement chances with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of Bank Of America Merrill Lynch Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Bank Of America Merrill Lynch Case Study Solution as well, but the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The changing macro trends in the market and increasing competition in the publishing industry has actually positioned specific dangers to Bank Of America Merrill Lynch Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Bank Of America Merrill Lynch Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the threat 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.
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual total earnings of Bank Of America Merrill Lynch Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite efficient in drawing in a big number of customers at a potential rate.
Together with it, the 2nd graph which shows the yearly development in the Bank Of America Merrill Lynch Case Study Help total assets, shows that the business is rather effective in including value to its properties through its earnings. The growth in assets shows that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis relating to the circulation of total revenues of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the Bank Of America Merrill Lynch Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the overall business at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Bank Of America Merrill Lynch Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. Nevertheless, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Bank Of America Merrill Lynch Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore 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 presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bank Of America Merrill Lynch Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in numerous market sectors, with a major concentrate on academic publications. CIP functions 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 might wean the market share of Bank Of America Merrill Lynch Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing market growth. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business ought to initially collects the data related to the customer need, the possible markets, the federal government regulations and the information related to the rivals provided in the market. After that, the company should choose one prospective segment for its initial offering. It must gather research study that how it could differentiate its digital publishing from the existing rivals' products. The steps above the company ought to go for the preliminary offering. If the initial offering shows a success, the company should opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a risk to the company's long term presence, but the situation can be controlled by thinking about a development strategy in the future. The company might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
