Be Our Guest Inc Case Study Solution and Analysis
Introduction
Be Our Guest Inc Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing info and communication services. Significant business sections of the company consist of; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports etc. Be Our Guest Inc Case Study Solution has ended up being a specialized information company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Be Our Guest Inc Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Be Our Guest Inc Case Study Analysis has particular strengths that can be used to decrease the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Be Our Guest Inc Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its clients.
• Strong financial position permits the company to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which might increase constraints for the company in executing its development program. The weak points of Be Our Guest Inc Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, affecting Be Our Guest Inc Case Study Solution as well, but the development might be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing industry has postured certain dangers to Be Our Guest Inc Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Be Our Guest Inc Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly overall incomes of Be Our Guest Inc Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a large number of clients at a possible rate.
In addition to it, the second chart which reveals the yearly growth in the Be Our Guest Inc Case Study Analysis total assets, reveals that the company is rather effective in including value to its assets through its incomes. The development in possessions reveals that the overall worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis relating to the circulation of overall earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to find out the various external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces affecting Be Our Guest Inc Case Study Analysis business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Be Our Guest Inc Case Study Help in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the economic policies connected to the import of books impact the general company at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Be Our Guest Inc Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Be Our Guest Inc Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Be Our Guest Inc Case Study Solution include;.
• Chemical Market 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor 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 business scale. It is likewise one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the decreasing market growth. Intro of digital publishing could prove to be an instant option with low quantity of risk for the company. However, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first collects the information connected to the customer demand, the potential markets, the federal government regulations and the data connected to the rivals presented in the market. After that, the business must decide one prospective segment for its preliminary offering. It needs to gather research that how it might distinguish its digital publishing from the existing rivals' items. After all the actions above the company should go for the initial offering. The company should go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining given that 2008, showing a risk to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
