Better Homes And Garden Real Estate Case Study Solution and Analysis
Introduction
Better Homes And Garden Real Estate Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing information and communication services. Significant service sections of the company consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports and so on. Better Homes And Garden Real Estate Case Study Solution has become 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.
Critical Issues
CMP has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing market in general and Better Homes And Garden Real Estate Case Study Help in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Better Homes And Garden Real Estate Case Study Solution has particular strengths that can be utilized to lower the risks, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Better Homes And Garden Real Estate Case Study Help in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position permits the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which could increase restraints for the company in executing its advancement program. The weaknesses of Better Homes And Garden Real Estate Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is decreasing given that 2008, affecting Better Homes And Garden Real Estate Case Study Solution as well, but the development could be restored by availing particular opportunities presented in the market. The market chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer 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 huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has presented certain threats to Better Homes And Garden Real Estate Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Better Homes And Garden Real Estate Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly total revenues of Better Homes And Garden Real Estate Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather effective in bring in a big number of customers at a potential rate.
In addition to it, the 2nd chart which reveals the annual growth in the Better Homes And Garden Real Estate Case Study Help total assets, shows that the business is quite efficient in adding worth to its assets through its earnings. The development in properties reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis regarding the circulation of overall profits of the business. Major part of the profits 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 organisation sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Better Homes And Garden Real Estate Case Study Analysis company are high. The federal 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 specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Better Homes And Garden Real Estate Case Study Help. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing could minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Better Homes And Garden Real Estate Case Study Help consists of the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to 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 gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers 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 also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Better Homes And Garden Real Estate Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Better Homes And Garden Real Estate Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Better Homes And Garden Real Estate Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the decreasing market development. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must first collects the information related to the customer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a threat to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
