Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution and Analysis
Introduction
Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis 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 service provider and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing industry in basic and Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
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 scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help has particular strengths that can be made use of to reduce the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the company to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help as well, but the growth might be restored by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has actually presented certain risks to Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be calculated. The general financial performance of the business could be examined by using the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of customers at a prospective rate.
In addition to it, the 2nd chart which reveals the annual development in the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help overall assets, reveals that the business is quite efficient in adding worth to its possessions through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis regarding the circulation of total profits of the company. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a potential development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the performance of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic 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 total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used 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.
Legal policies for the publishing sector at whole are high. Publishing Regulation 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 analyze the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the files provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Barnes Noble Inc The Yucaipa Proxy Challenge 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 could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing industry development. The business could also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a risk to the business's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider 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.
