Blue Harbor Limited Case Study Solution and Analysis
Blue Harbor Limited Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing details and communication services. Major company sectors of the company consist of; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports and so on. Blue Harbor Limited Case Study Help has actually ended up being a specialized info provider and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and Blue Harbor Limited Case Study Analysis in particular. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 valuable experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Blue Harbor Limited Case Study Solution has certain strengths that can be used to decrease the dangers, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Blue Harbor Limited Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong financial position allows the business to think about numerous advancement chances with no worry of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restraints for the business in executing its development program. The weak points of Blue Harbor Limited 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 suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining because 2008, affecting Blue Harbor Limited Case Study Analysis as well, however the growth could be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• 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 growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its large funds.
The changing macro trends in the market and increasing competition in the publishing industry has posed specific hazards to Blue Harbor Limited Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Blue Harbor Limited Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using specific methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the threat of losing the client base.
Due to lack of data, the monetary ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the annual total revenues of Blue Harbor Limited Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the business is quite efficient in bring in a big number of clients at a potential price.
Along with it, the 2nd graph which reveals the yearly development in the Blue Harbor Limited Case Study Analysis overall assets, reveals that the company is rather effective in including worth to its properties through its earnings. The development in properties shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis concerning the circulation of total earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a prospective growth to attain its future development goal.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It might be stated that the general political forces affecting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Blue Harbor Limited Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books affect the total organisation at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading informative products and so on. China has the greatest population worldwide with a high population growth, showing the increasing variety of consumers of the Blue Harbor Limited Case Study Solution. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Blue Harbor Limited Case Study Help consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published documents is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the risk of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Blue Harbor Limited 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 buyers requires high quality documents at competitive prices.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Blue Harbor Limited Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases similar kind of books. For a large time period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sectors, with a major concentrate on educational publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Blue Harbor Limited Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Blue Harbor Limited Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its items in the market.
As the choices are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry development. The business might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer demand, the potential markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this method the business would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing because 2008, showing a danger to the business's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.