Blood Bananas Chiquita In Colombia Case Study Solution and Analysis
Intro
Blood Bananas Chiquita In Colombia Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in general and Blood Bananas Chiquita In Colombia Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be made use of to pursue the future advancement 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 Case Study Help has certain strengths that can be used to reduce the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Blood Bananas Chiquita In Colombia Case Study Help in the publishing industry 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 generated by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which might increase constraints for the business in implementing its development program. The weaknesses of Blood Bananas Chiquita In Colombia Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Blood Bananas Chiquita In Colombia Case Study Analysis as well, but the development might be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has positioned specific hazards to Blood Bananas Chiquita In Colombia Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Blood Bananas Chiquita In Colombia Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total revenues of Blood Bananas Chiquita In Colombia Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is quite effective in drawing in a big number of clients at a prospective cost.
Together with it, the 2nd graph which reveals the annual development in the Blood Bananas Chiquita In Colombia Case Study Solution total assets, reveals that the company is rather effective in including worth to its properties through its profits. The growth in possessions shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the circulation of overall profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation segments with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading informative products and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Blood Bananas Chiquita In Colombia Case Study Analysis. However, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Blood Bananas Chiquita In Colombia Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. However, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on specific sites. The changing customer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Blood Bananas Chiquita In Colombia Case Study Solution consist of the suppliers 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 Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Blood Bananas Chiquita In Colombia Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to business scale. It is also among the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competition 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 items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the declining market growth. For that reason, intro of digital publishing could prove to be an immediate solution with low quantity of threat for the company. Nevertheless, the business might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first gathers the information related to the consumer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, showing a hazard to the company's long term existence, but the circumstance can be managed by considering an advancement strategy in the future. The business might think about 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.
