Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution and Analysis
Introduction
Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting information, processing information and interaction services. Major service sections of the company consist of; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant items include books, regulars, online media, exhibits, research reports and so on. Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis has ended up being a specialized details supplier and a large thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing market in general and Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Help in particular. These factors consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns 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 abilities of the company could be used 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
Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution has certain strengths that can be used to reduce the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong financial position permits the business to think about a number of advancement chances with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which could increase restrictions for the company in executing its development program. The weak points of Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis as well, but the growth could be revived by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has postured specific hazards to Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to decreasing market share of Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competitors increases the threat of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It could be examined from the Appendix III that the yearly overall incomes of Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Help throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a large number of customers at a prospective cost.
Together with it, the second chart which reveals the yearly growth in the Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution total possessions, reveals that the business is quite efficient in including worth to its properties through its earnings. The development in assets shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the given data might be the analysis concerning the distribution of total earnings of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the state of mind of individuals 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. Therefore, it could be stated that the general political forces affecting Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Help organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development 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 items, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider 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 market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence 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 competitors of Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in various market segments, with a major focus on academic publications. CIP functions as a danger 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 Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Blue Man Group Creativity Life And Surviving An Economic Meltdown Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides 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 organisation segments to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the declining market development. Introduction of digital publishing could show to be an instant solution with low amount of danger for the business. However, the company could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to initially gathers the data connected to the customer demand, the possible markets, the government guidelines and the data related to the rivals provided in the market. After that, the business should choose one possible sector for its preliminary offering. It needs to collect research study that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the business need to opt for the initial offering. If the initial offering proves a success, the company should choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, revealing a danger to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
