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Bel Brand The Laughing Cow Challenge Case Help

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Bel Brand The Laughing Cow Challenge Case Study Solution and Analysis


Intro

Bel Brand The Laughing Cow Challenge Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing details and communication services. Significant company segments of the business consist of; books, regulars, consultancy and circulation. The business has a vast item portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Bel Brand The Laughing Cow Challenge Case Study Analysis has actually ended up being a specialized information supplier and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.

Crucial Issues

Although, Bel Brand The Laughing Cow Challenge Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and CMP in particular. These factors include;

• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The improvement of the macro markets have raised numerous 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 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


Bel Brand The Laughing Cow Challenge Case Study Analysis has certain strengths that can be utilized to reduce the dangers, get rid of the weakness and get the chances. Strengths of CMP are given as follows;

• The long term experience of Bel Brand The Laughing Cow Challenge Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high worth to its customers.
• Strong monetary position allows the business to think about several development opportunities with no fear of raising fund externally.

Weak points

In addition to the strengths, the business has certain weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Bel Brand The Laughing Cow Challenge Case Study Solution are offered 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 highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing industry is decreasing given that 2008, affecting Bel Brand The Laughing Cow Challenge Case Study Analysis also, but the development might be restored by availing specific opportunities provided in the market. The market opportunities for CMP include;

• The company might also introduce Digital Publishing by utilizing 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 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 actually postured certain dangers to Bel Brand The Laughing Cow Challenge Case Study Solution including;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Bel Brand The Laughing Cow Challenge Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.

Financial Analysis.
Swot Analysis
Due to lack of data, the financial ratios of CMP might not be determined. It might be examined from the Appendix III that the annual overall incomes of Bel Brand The Laughing Cow Challenge Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of CMP is growing and the business is rather effective in bring in a large number of clients at a possible rate.

In addition to it, the 2nd graph which reveals the annual growth in the Bel Brand The Laughing Cow Challenge Case Study Solution overall assets, shows that the business is quite efficient in including value to its possessions through its earnings. The development in assets shows that the overall value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).

Another monetary analysis of the company utilizing the provided data might be the analysis relating to the distribution of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sectors with a prospective development to attain its future advancement goal.

PESTEL Analysis

PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Bel Brand The Laughing Cow Challenge Case Study Solution business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.

Economical.

Financial forces impacting the publishing sector in general and the Bel Brand The Laughing Cow Challenge Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies connected to the import of books affect the total organisation at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and customer income level.

Social and Demographical.

The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.

Technological.

Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces impacting Bel Brand The Laughing Cow Challenge Case Study Analysis includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's 5 Forces Model).

Porter's Five Forces Design could be utilized to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.

Danger of New Entrants.

Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.

Threat of Alternative.

Hazard of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on specific websites. The altering consumer choices towards digital learning increase the threat of replacement for the market.

Competitive Competition.

Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The major providers of the Bel Brand The Laughing Cow Challenge Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total 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 existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.

Rivals Analysis.

CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bel Brand The Laughing Cow Challenge Case Study Help include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIPis one of the close rivals of CMP. Established in the exact same period, CIP publishes comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in numerous market segments, with a major focus on instructional publications. CIP functions as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Bel Brand The Laughing Cow Challenge Case Study Help quickly in the present market situation.

Posts and telecommunication Press (PTP).

It was also founded in the same duration as Bel Brand The Laughing Cow Challenge Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its products in the market.

Recommendations

With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing market development. Introduction of digital publishing could prove to be an immediate option with low amount of risk for the company. However, the business might also consider the growth program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its item portfolio, the company needs to initially collects the data connected to the consumer demand, the possible markets, the government guidelines and the information related to the rivals presented in the market. After that, the business should decide one prospective segment for its preliminary offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' products. After all the actions above the company must opt for the initial offering. If the initial offering proves a success, the business ought to opt for the other markets. In this method the company would have the ability to execute its digital publishing program.

Conclusion

Although, the growth of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.

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