Blue Ridge Spain 3 Case Study Solution and Analysis
Blue Ridge Spain 3 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing market in general and Blue Ridge Spain 3 Case Study Solution in particular. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
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 important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Blue Ridge Spain 3 Case Study Solution has certain strengths that can be used to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Blue Ridge Spain 3 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high worth to its clients.
• Strong financial position permits the business to consider a number of development chances with no fear of raising fund externally.
In addition to the strengths, the company has certain weaknesses which might increase restraints for the business in executing its development program. The weak points of Blue Ridge Spain 3 Case Study Help are given as follows;
• Despite of being a science and innovation 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 should propose particular growth plans to prevent its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing industry is declining given that 2008, affecting Blue Ridge Spain 3 Case Study Analysis also, however the growth might be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize 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 positioned particular dangers to Blue Ridge Spain 3 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Blue Ridge Spain 3 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market 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 promo, quality products, etc.
• Entryway of new publishing companies in the market along with presence of high competition increases the hazard of losing the consumer base.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP could not be determined. The total monetary performance of the business could be evaluated by using the charts offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Blue Ridge Spain 3 Case Study Help is growing and the company is quite efficient in bring in a large number of consumers at a potential rate.
Together with it, the 2nd graph which shows the yearly growth in the Blue Ridge Spain 3 Case Study Solution total properties, shows that the business is rather efficient in including worth to its properties through its incomes. The growth in properties reveals that the total value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the circulation of total earnings of the business. Major part of the revenues 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 sectors with a prospective growth to attain its future development objective.
PESTEL analysis might be carried out to find out the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Blue Ridge Spain 3 Case Study Analysis business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards checking out useful products etc. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Blue Ridge Spain 3 Case Study Solution. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation along with the increase of digital publishing could reduce the need for the CMP items, if certain actions would not be taken soon.
Environmental forces affecting Blue Ridge Spain 3 Case Study Solution consists of the issues of environmental 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 utilized while publishing needs to not be hazardous for the environment.
Legal guidelines 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 forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the digital libraries on particular websites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive competition in the publishing market is high. The presence 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. Together with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Blue Ridge Spain 3 Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in an extremely competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Blue Ridge Spain 3 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it could 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 existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Blue Ridge Spain 3 Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item 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 sections to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with 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 need an immediate service to prevent the decreasing industry growth. For that reason, introduction of digital publishing might show to be an immediate option with low quantity of danger for the business. Nevertheless, the business might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must first collects the information related to the consumer demand, the potential markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term existence, but the situation can be managed by considering a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.