Barcelo Hotels And Resorts A Case Study Solution and Analysis
Intro
Barcelo Hotels And Resorts A Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring certain difficulties to the publishing industry in general and Barcelo Hotels And Resorts A Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Barcelo Hotels And Resorts A Case Study Analysis has specific strengths that can be utilized to decrease the threats, get rid of the weak point and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Barcelo Hotels And Resorts A Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position enables the company to think about a number of advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the company in executing its development program. The weak points of Barcelo Hotels And Resorts A Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Barcelo Hotels And Resorts A Case Study Help as well, but the growth could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented specific threats to Barcelo Hotels And Resorts A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Barcelo Hotels And Resorts A Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the market together with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be calculated. The overall financial performance of the business might be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Barcelo Hotels And Resorts A Case Study Solution is growing and the business is quite efficient in drawing in a a great deal of consumers at a possible cost.
Along with it, the second chart which shows the yearly development in the Barcelo Hotels And Resorts A Case Study Help total possessions, shows that the business is quite effective in including worth to its assets through its profits. The development in possessions reveals that the overall value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis relating to the circulation of overall incomes of the company. Huge 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 might move towards other service sections with a potential growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting Barcelo Hotels And Resorts A Case Study Analysis service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Barcelo Hotels And Resorts A Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall service at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Barcelo Hotels And Resorts A Case Study Help consists of the concerns 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 used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the files provided in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the danger 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. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Barcelo Hotels And Resorts A Case Study Help consist of the providers of the paper for publishing files. 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 Buyer.
Haggling power of buyer 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 buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Barcelo Hotels And Resorts A Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a significant focus on educational publications. CIP serves 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 might wean the marketplace share of Barcelo Hotels And Resorts A Case Study Solution easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the decreasing industry growth. Therefore, introduction of digital publishing could show to be an instant solution with low amount of danger for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business must initially gathers the information associated with the consumer demand, the potential markets, the government regulations and the data associated with the competitors presented in the market. After that, the business ought to decide one possible section for its initial offering. It needs to collect research that how it might differentiate its digital publishing from the existing rivals' items. After all the actions above the company must go for the preliminary offering. The business must go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term presence, but the scenario can be managed by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
