Better Homes And Garden Real Estate Case Study Solution and Analysis
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 number of services consisting of; collecting details, processing details and communication services. Significant business sections of the company include; books, regulars, consultancy and circulation. The business has a vast product portfolio and its major items consist of books, regulars, online media, exhibitions, research study reports and so on. Better Homes And Garden Real Estate Case Study Analysis has actually become a specialized details service provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Better Homes And Garden Real Estate Case Study Solution in specific. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement 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 scenario? Do the long valuable experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Better Homes And Garden Real Estate Case Study Help has certain strengths that can be made use of to minimize the risks, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Better Homes And Garden Real Estate Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created 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 financial position permits the business to think about a number of development opportunities with no worry of raising fund externally.
Together with the strengths, the company has specific weak points which might increase constraints for the business in implementing its advancement program. The weak points of Better Homes And Garden Real Estate Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to attain long term growth.
The development of the publishing industry is decreasing since 2008, impacting Better Homes And Garden Real Estate Case Study Analysis as well, but the growth could be revived by availing certain chances provided in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
The altering macro patterns in the market and increasing competition in the publishing market has posed particular risks to Better Homes And Garden Real Estate Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Better Homes And Garden Real Estate Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market together with existence of high competitors increases the threat of losing the customer base.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be calculated. The general financial performance of the business could be examined by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Better Homes And Garden Real Estate Case Study Analysis is growing and the business is rather effective in bring in a a great deal of consumers at a possible rate.
Together with it, the 2nd chart which shows the yearly development in the Better Homes And Garden Real Estate Case Study Analysis total assets, reveals that the business is rather effective in including worth to its properties through its profits. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the provided data might be the analysis concerning the circulation of total profits of the business. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a potential development to accomplish its future development goal.
PESTEL analysis might be conducted to find out the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Better Homes And Garden Real Estate Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books impact the general company at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
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 in the world with a high population development, revealing the increasing variety of consumers of the Better Homes And Garden Real Estate Case Study Help. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Ecological forces affecting Better Homes And Garden Real Estate Case Study Help includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the released documents is the files presented in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Better Homes And Garden Real Estate Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Better Homes And Garden Real Estate Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP releases similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a major focus on educational publications. CIP acts as a threat 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 market share of Better Homes And Garden Real Estate Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its items in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate option to avoid the declining market growth. For that reason, intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the customer demand, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing since 2008, revealing a threat to the business's long term presence, however the situation can be managed by considering an advancement plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.