Bling Nation Case Study Solution and Analysis
Bling Nation Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and communication services. Significant service sectors of the business consist of; books, regulars, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Bling Nation Case Study Analysis has actually become a specialized information supplier and a large extensive Science and Innovation publishing company 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 challenges to the publishing industry in general and Bling Nation Case Study Solution in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Bling Nation Case Study Help has particular strengths that can be made use of to decrease the hazards, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Bling Nation Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high worth to its customers.
• Strong monetary position allows the company to consider a number of development chances with no worry of raising fund externally.
Together with the strengths, the company has certain weaknesses which could increase constraints for the company in implementing its advancement program. The weak points of Bling Nation Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining considering that 2008, impacting Bling Nation Case Study Help also, however the development might be restored by availing specific chances provided in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition 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.
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular dangers to Bling Nation Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Bling Nation Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific techniques like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the hazard of losing the consumer base.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. The overall monetary efficiency of the company might be evaluated by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Bling Nation Case Study Solution is growing and the company is quite effective in bring in a a great deal of clients at a possible rate.
In addition to it, the second chart which shows the yearly growth in the Bling Nation Case Study Solution total assets, reveals that the company is quite efficient in including worth to its assets through its earnings. The growth in possessions reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis concerning the distribution of total profits of the company. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a prospective growth to attain its future development goal.
PESTEL analysis could be conducted to find out the various external forces impacting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the 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 said that the overall political forces affecting Bling Nation Case Study Help business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces impacting Bling Nation Case Study Help includes the issues of ecological neighborhoods 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 used while publishing ought to not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Bling Nation Case Study Help include the providers of the paper for publishing 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 Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Bling Nation Case Study Analysis include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the business together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the decreasing market growth. For that reason, intro of digital publishing might show to be an immediate option with low amount of risk for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first gathers the data associated with the customer demand, the prospective markets, the federal government regulations and the information connected to the competitors provided in the market. After that, the company needs to choose one potential sector for its initial offering. It needs to collect research that how it could distinguish its digital publishing from the existing competitors' items. The steps above the business need to go for the preliminary offering. The business needs to go for the other markets if the initial offering shows a success. In this way the company would have the ability to implement its digital publishing program.
Although, the development of the publishing industry is declining given that 2008, showing a danger to the company's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the new markets.