Blue Harbor Limited Case Study Solution and Analysis
Introduction
Blue Harbor Limited Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting information, processing information and interaction services. Significant company sectors of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports etc. Blue Harbor Limited Case Study Help has ended up being a specialized information provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in basic and Blue Harbor Limited Case Study Solution in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous 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 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
Blue Harbor Limited Case Study Analysis has specific strengths that can be utilized to lower the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Blue Harbor Limited Case Study Help in the publishing industry i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position permits the company to consider numerous development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which could increase restraints for the company in implementing its advancement program. The weak points of Blue Harbor Limited Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Blue Harbor Limited Case Study Help also, but the growth could be restored by availing particular opportunities provided in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain dangers to Blue Harbor Limited Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Blue Harbor Limited Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market together with presence of high competition increases the risk of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be computed. However, the overall financial performance of the company could be evaluated by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Blue Harbor Limited Case Study Help is growing and the company is rather efficient in attracting a large number of clients at a possible rate.
Along with it, the second graph which reveals the yearly development in the Blue Harbor Limited Case Study Analysis total possessions, shows that the company is quite efficient in including value to its possessions through its earnings. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the offered information might be the analysis concerning the circulation of overall earnings of the company. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It might be stated that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation together with the increase of digital publishing might decrease the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Blue Harbor Limited Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the virtual libraries on particular websites. The changing consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Blue Harbor Limited Case Study Solution consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. However, 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 Help consist of;.
• Chemical Market 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 quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the 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 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 shifting towards digital publishing and the company require an immediate option to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an instant service with low amount of risk for the business. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business ought to first gathers the data related to the customer need, the possible markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a threat to the company's long term existence, but the situation can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
