Bed Bath Beyond The Capital Structure Decision Case Study Solution and Analysis
Intro
Bed Bath Beyond The Capital Structure Decision Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting details, processing information and communication services. Significant organisation sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Bed Bath Beyond The Capital Structure Decision Case Study Solution has become a specialized details provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing market in basic and Bed Bath Beyond The Capital Structure Decision Case Study Solution in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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
Bed Bath Beyond The Capital Structure Decision Case Study Help has certain strengths that can be made use of to minimize the risks, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Bed Bath Beyond The Capital Structure Decision Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position allows the business to consider a number of development chances with no worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Bed Bath Beyond The Capital Structure Decision Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing since 2008, affecting Bed Bath Beyond The Capital Structure Decision Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented specific risks to Bed Bath Beyond The Capital Structure Decision Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Bed Bath Beyond The Capital Structure Decision Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain methods like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. The overall financial efficiency of the business might be analyzed by using the charts provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of Bed Bath Beyond The Capital Structure Decision Case Study Solution is growing and the company is rather efficient in bring in a a great deal of clients at a potential price.
In addition to it, the second graph which shows the yearly development in the Bed Bath Beyond The Capital Structure Decision Case Study Analysis overall properties, reveals that the company is rather effective in including worth to its possessions through its revenues. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis relating to the distribution of overall profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting Bed Bath Beyond The Capital Structure Decision Case Study Solution organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine effect the demand 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 should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Bed Bath Beyond The Capital Structure Decision Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable 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. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bed Bath Beyond The Capital Structure Decision Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Bed Bath Beyond The Capital Structure Decision Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might 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 easily in the present market situation.
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 6th in the state-owned publishers in terms of business scale. It is also among the popular gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low threat 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 business segments to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate service to avoid the declining market development. The company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company should first collects the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, showing a threat to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
