Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution and Analysis
Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing info and communication services. Significant business segments of the company include; books, regulars, consultancy and distribution. The company has a large product portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help has actually become a specialized details service provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
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 market in general and Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help in particular. These factors include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The transformation 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 business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help has certain strengths that can be made use of to decrease the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position allows the company to consider several advancement chances without any worry of raising fund externally.
In addition to the strengths, the business has certain weak points which could increase restraints for the business in implementing its advancement program. The weaknesses of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
The growth of the publishing market is decreasing since 2008, affecting Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution as well, but the growth could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has presented certain dangers to Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the danger of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be examined from the Appendix III that the annual overall earnings of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite effective in drawing in a big number of consumers at a possible price.
Together with it, the 2nd chart which reveals the yearly growth in the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help total properties, reveals that the business is quite effective in including value to its possessions through its revenues. The growth in properties shows that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis relating to the distribution of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a potential development to achieve its future advancement goal.
PESTEL analysis could be carried out to discover the numerous 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 provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total business at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards checking out useful products etc. China has the greatest population in the world with a high population development, revealing the increasing number of consumers of the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Analysis. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Ecological forces affecting Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought 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 Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative items for the published files is the files provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers 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 likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining 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 marketplace saturation, the purchasers needs high quality files at competitive rates.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Barnes Noble Inc The Yucaipa Proxy Challenge Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 could wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible 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 introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the company together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an immediate option to avoid the decreasing industry development. Introduction of digital publishing might prove to be an instant solution with low amount of threat for the company. The company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should first gathers the information related to the consumer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the development of the publishing market is decreasing since 2008, revealing a risk to the business's long term presence, but the scenario can be controlled by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.