Bayerische Motoren Werke Ag Bmw Case Study Solution and Analysis
Intro
Bayerische Motoren Werke Ag Bmw Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Bayerische Motoren Werke Ag Bmw Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? 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 company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bayerische Motoren Werke Ag Bmw Case Study Help has specific strengths that can be made use of to minimize the hazards, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Bayerische Motoren Werke Ag Bmw Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its development program. The weak points of Bayerische Motoren Werke Ag Bmw Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has conventional 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 growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Bayerische Motoren Werke Ag Bmw Case Study Help as well, however the development might be restored by availing particular chances provided in the market. The marketplace opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing industry has actually postured certain threats to Bayerische Motoren Werke Ag Bmw Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Bayerische Motoren Werke Ag Bmw Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall profits of Bayerische Motoren Werke Ag Bmw Case Study Solution during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in attracting a big number of customers at a potential price.
Together with it, the second chart which shows the annual growth in the Bayerische Motoren Werke Ag Bmw Case Study Analysis overall properties, reveals that the company is rather efficient in including worth to its assets through its profits. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis relating to the circulation of total revenues of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sectors with a possible growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the overall political forces affecting Bayerische Motoren Werke Ag Bmw Case Study Help organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading informative materials etc. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Bayerische Motoren Werke Ag Bmw Case Study Solution. However, the consumer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Enhancement of science and technology along with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Bayerische Motoren Werke Ag Bmw Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards 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 existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published documents is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the danger of substitution 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 Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Bayerische Motoren Werke Ag Bmw Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier 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 requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Bayerische Motoren Werke Ag Bmw Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item 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 organisation sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an instant option to avoid the decreasing market growth. Intro of digital publishing might prove to be an immediate solution with low quantity of threat for the company. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the business should initially collects the data related to the customer demand, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the company's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entryway in the new markets.
