Blood Bananas Chiquita In Colombia Case Study Solution and Analysis
Blood Bananas Chiquita In Colombia Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and Blood Bananas Chiquita In Colombia Case Study Solution in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Blood Bananas Chiquita In Colombia Case Study Solution has certain strengths that can be made use of to minimize the threats, conquer the weakness 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 supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position permits the business to consider a number of development opportunities without any fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weak points of Blood Bananas Chiquita In Colombia Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Blood Bananas Chiquita In Colombia Case Study Help as well, however the development might be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular dangers to Blood Bananas Chiquita In Colombia Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause decreasing market share of Blood Bananas Chiquita In Colombia Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the customer base.
Due to lack of data, the financial ratios of CMP might not be determined. It might be evaluated from the Appendix III that the annual total profits of Blood Bananas Chiquita In Colombia Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather effective in bring in a large number of consumers at a prospective cost.
Together with it, the second chart which reveals the annual development in the Blood Bananas Chiquita In Colombia Case Study Solution overall assets, shows that the company is rather efficient in including worth to its properties through its incomes. The growth in properties shows that the total value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis concerning the distribution of total profits of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sections with a prospective growth to accomplish its future development objective.
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces affecting Blood Bananas Chiquita In Colombia Case Study Analysis company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Blood Bananas Chiquita In Colombia Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the need for the publishing market. Together with it, the economic policies associated with the import of books impact the total company at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's preferences towards checking out informative materials and so on. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Blood Bananas Chiquita In Colombia Case Study Analysis. The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing might lower the need for the CMP items, if particular actions would not be taken quickly.
Ecological forces impacting Blood Bananas Chiquita In Colombia Case Study Solution consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the files provided in the virtual libraries on particular sites. The changing consumer preferences towards digital learning increase the risk of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number 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 entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Blood Bananas Chiquita In Colombia Case Study Analysis consist of the suppliers of the paper for releasing files. 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 Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Blood Bananas Chiquita In Colombia Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market sections, with a major focus on instructional publications. CIP acts as a risk 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 Blood Bananas Chiquita In Colombia Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
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 accomplish its future advancement. As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. For that reason, introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must first collects the information related to the consumer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
The development of the publishing industry is declining since 2008, showing a risk to the business's long term existence, however the scenario can be managed by thinking about a development strategy in the future. The business could consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.