Bel Brand The Laughing Cow Challenge Case Study Solution and Analysis
Bel Brand The Laughing Cow Challenge Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually 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.
Although, Bel Brand The Laughing Cow Challenge Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Bel Brand The Laughing Cow Challenge Case Study Solution has certain strengths that can be made use of to decrease the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Bel Brand The Laughing Cow Challenge Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and offer high value to its customers.
• Strong monetary position enables the business to think about a number of development opportunities without any worry of raising fund externally.
Along with the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of Bel Brand The Laughing Cow Challenge Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
The development of the publishing industry is declining given that 2008, impacting Bel Brand The Laughing Cow Challenge Case Study Help as well, however the development could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
The changing macro trends in the market and increasing competitors in the publishing market 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 cause decreasing market share of Bel Brand The Laughing Cow Challenge Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the risk of losing the client base.
Due to lack of data, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total incomes of Bel Brand The Laughing Cow Challenge Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in bring in a large number of customers at a prospective price.
Together with it, the 2nd graph which reveals the annual development in the Bel Brand The Laughing Cow Challenge Case Study Analysis overall assets, shows that the company is quite effective in including value to its assets through its incomes. The development in assets reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the circulation of overall profits of the business. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible growth to accomplish its future development objective.
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be stated that the total political forces affecting Bel Brand The Laughing Cow Challenge Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Bel Brand The Laughing Cow Challenge Case Study Solution. The consumer preferences are shifting 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 preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Bel Brand The Laughing Cow Challenge Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal guidelines 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 first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Bel Brand The Laughing Cow Challenge Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 purchasers requires high quality documents at competitive costs.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Bel Brand The Laughing Cow Challenge Case Study Help consist of;.
• 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 duration, CIP releases similar type of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sectors, with a significant focus on academic publications. CIP serves 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 marketplace share of Bel Brand The Laughing Cow Challenge Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Bel Brand The Laughing Cow Challenge Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the business need an immediate option to prevent the declining market growth. The company could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to first collects the information related to the customer need, the possible markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing since 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.