Blue Ridge Spain 3 Case Study Solution and Analysis
Intro
Blue Ridge Spain 3 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and Blue Ridge Spain 3 Case Study Solution in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Blue Ridge Spain 3 Case Study Analysis has specific strengths that can be made use of to decrease the risks, get rid of the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Blue Ridge Spain 3 Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong monetary position enables the business to consider several advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which might increase constraints for the company in executing its development program. The weak points of Blue Ridge Spain 3 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Blue Ridge Spain 3 Case Study Solution also, but the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has posed specific risks to Blue Ridge Spain 3 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of Blue Ridge Spain 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry together with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP could not be computed. Nevertheless, the total financial efficiency of the company might be examined by using the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Blue Ridge Spain 3 Case Study Help 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 graph which reveals the annual development in the Blue Ridge Spain 3 Case Study Solution overall assets, reveals that the business is quite effective in including worth to its assets through its profits. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the provided data might be the analysis relating to the distribution of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state 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. For that reason, it might be stated that the general political forces impacting Blue Ridge Spain 3 Case Study Help company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Blue Ridge Spain 3 Case Study Solution in particular includesthe prices 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. Together with it, the economic policies related to the import of books impact the overall business at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out helpful materials etc. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the Blue Ridge Spain 3 Case Study Solution. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and technology along with the increase of digital publishing might reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Blue Ridge Spain 3 Case Study Solution consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on particular sites. The changing customer preferences towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Blue Ridge Spain 3 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Blue Ridge Spain 3 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-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 together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business need 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 danger for the business. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should initially collects the information related to the customer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, showing a threat to the business's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
