Bling Nation Case Study Solution and Analysis
Intro
Bling Nation Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Bling Nation Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised numerous 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 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 Nation Case Study Help has particular strengths that can be made use of to decrease the risks, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Bling Nation Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its clients.
• Strong monetary position enables the business to consider numerous advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which might increase constraints for the business in executing its advancement program. The weak points of Bling Nation Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, affecting Bling Nation Case Study Help as well, but the development could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has presented specific dangers to Bling Nation Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Bling Nation Case Study Analysis due to the consumer shift towards digital 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 get a strong customer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to lack of data, the monetary ratios of CMP might not be determined. However, the general monetary performance of the company might be analyzed by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Bling Nation Case Study Analysis is growing and the business is rather efficient in attracting a large number of clients at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the Bling Nation Case Study Help total possessions, shows that the business is quite efficient in including value to its possessions through its profits. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the given data might be the analysis relating to the distribution of overall profits of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the Bling Nation Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Bling Nation Case Study Analysis includes the concerns of ecological neighborhoods over the usage 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. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the released documents is the documents provided in the virtual libraries on certain websites. The altering customer preferences towards digital learning increase the risk of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry 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. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Bling Nation Case Study Solution include the providers of the paper for publishing files. 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry 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 competitors of Bling Nation Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is likewise one of the popular players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business need an immediate service to prevent the decreasing market development. Introduction of digital publishing could prove to be an instant option with low quantity of danger for the business. 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 item portfolio, the business needs to first collects the information connected to the consumer demand, the potential markets, the federal government policies and the data connected to the rivals provided in the market. After that, the company needs to decide one potential section for its preliminary offering. It should gather research study that how it could differentiate its digital publishing from the existing rivals' products. The actions above the company ought to go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing given that 2008, showing a risk to the business's long term existence, but the situation can be managed by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
