Bling Max Car Wash Case Study Solution and Analysis
Intro
Bling Max Car Wash Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Bling Max Car Wash Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several 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 utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bling Max Car Wash Case Study Solution has particular strengths that can be utilized to reduce the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Bling Max Car Wash Case Study Analysis in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position allows the business to think about several development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its advancement program. The weak points of Bling Max Car Wash Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Bling Max Car Wash Case Study Solution as well, but the growth might be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has actually postured certain hazards to Bling Max Car Wash Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Bling Max Car Wash Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP might not be computed. However, the total monetary efficiency of the business might be evaluated by using the charts given in the case Appendices. It might be examined from the Appendix III that the yearly overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Bling Max Car Wash Case Study Analysis is growing and the company is quite effective in attracting a large number of clients at a possible price.
In addition to it, the second graph which reveals the annual growth in the Bling Max Car Wash Case Study Analysis overall properties, shows that the company is quite efficient in including worth to its possessions through its revenues. The growth in assets shows that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis regarding the circulation of total revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the numerous external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Bling Max Car Wash Case Study Solution company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Bling Max Car Wash Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the files provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the threat of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bling Max Car Wash Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Bling Max Car Wash Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Bling Max Car Wash Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the company to lose demand of its items 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 attain its future development. As the preferences are moving towards digital publishing and the company need an immediate option to prevent the decreasing market development. Introduction of digital publishing might prove to be an instant option with low quantity of danger for the business. Nevertheless, the business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first collects the data associated with the customer need, the prospective markets, the government regulations and the data related to the competitors presented in the market. After that, the company should choose one potential section for its initial offering. It should gather research that how it might differentiate its digital publishing from the existing rivals' products. After all the steps above the company ought to go for the initial offering. The business must go for the other markets if the preliminary offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing because 2008, revealing a hazard to the company's long term presence, however the situation can be controlled by considering an advancement plan in the future. The business might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
