Bid For Service Case Study Solution and Analysis
Introduction
Bid For Service Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing details and interaction services. Major service segments of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports and so on. Bid For Service Case Study Analysis has become a specialized information provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Bid For Service Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring particular challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be made use of 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
Bid For Service Case Study Analysis has certain strengths that can be made use of to minimize the risks, overcome the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Bid For Service Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong financial position enables the company to consider numerous development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the business has specific weak points which could increase constraints for the company in executing its development program. The weak points of Bid For Service Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the business still has traditional 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 certain expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is declining because 2008, impacting Bid For Service Case Study Analysis also, but the development might be revived by availing certain opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to Bid For Service Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Bid For Service Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It could be evaluated from the Appendix III that the yearly overall earnings of Bid For Service Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of CMP is growing and the company is quite effective in attracting a big number of clients at a potential price.
Together with it, the 2nd graph which shows the annual growth in the Bid For Service Case Study Help total possessions, reveals that the business is rather efficient in adding worth to its possessions through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the distribution of total earnings of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sectors with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Bid For Service Case Study Solution organisation are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Bid For Service Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the overall company at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology together with the rise of digital publishing might decrease the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Bid For Service Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the documents provided in the digital libraries on specific websites. The altering consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Bid For Service Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bid For Service Case Study Help 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Bid For Service Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of prospective 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 introduce using present capabilities.
• Low danger 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 brand-new one can lead the company 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 market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company require an immediate solution to avoid the declining industry development. Intro of digital publishing could prove to be an instant service with low amount of risk for the business. However, the company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the customer need, the potential markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering shows 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
Although, the development of the publishing industry is decreasing because 2008, revealing a danger to the company's long term presence, but the situation can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
