Blood Bananas Chiquita In Colombia 3 Case Study Solution and Analysis
Introduction
Blood Bananas Chiquita In Colombia 3 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing details and interaction services. Major service segments of the company consist of; books, periodicals, consultancy and circulation. The business has a large product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Blood Bananas Chiquita In Colombia 3 Case Study Analysis has ended up being a specialized details company and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
Although, Blood Bananas Chiquita In Colombia 3 Case Study Help has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Blood Bananas Chiquita In Colombia 3 Case Study Analysis has particular strengths that can be used to lower the threats, get rid of the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Blood Bananas Chiquita In Colombia 3 Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the business to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weak points which might increase constraints for the business in executing its development program. The weak points of Blood Bananas Chiquita In Colombia 3 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Blood Bananas Chiquita In Colombia 3 Case Study Solution as well, but the development might be revived by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competitors in the publishing market has presented particular dangers to Blood Bananas Chiquita In Colombia 3 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Blood Bananas Chiquita In Colombia 3 Case Study Help due to the consumer shift towards virtual 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 get a strong customer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the industry together with presence of high competition increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual total incomes of Blood Bananas Chiquita In Colombia 3 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a prospective rate.
Together with it, the 2nd chart which reveals the yearly growth in the Blood Bananas Chiquita In Colombia 3 Case Study Analysis total assets, shows that the business is quite effective in adding value to its properties through its profits. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the distribution of overall revenues of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the overall political forces impacting CMP business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful materials and so on. China has the greatest population worldwide with a high population growth, showing the increasing number of customers of the Blood Bananas Chiquita In Colombia 3 Case Study Analysis. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Blood Bananas Chiquita In Colombia 3 Case Study Help includes the concerns of environmental 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 used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the documents presented in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Blood Bananas Chiquita In Colombia 3 Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market 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 files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Blood Bananas Chiquita In Colombia 3 Case Study Help consist of;.
• Chemical Industry 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Blood Bananas Chiquita In Colombia 3 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low threat 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 business sectors to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company require an immediate solution to avoid the declining market development. Therefore, introduction of digital publishing might show to be an immediate option with low quantity of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company ought to initially gathers the data related to the consumer demand, the prospective markets, the government policies and the information related to the rivals presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a threat to the company's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
