Bluntly Media A Private Company Valuation 6 Case Study Solution and Analysis
Introduction
Bluntly Media A Private Company Valuation 6 Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, Bluntly Media A Private Company Valuation 6 Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 made use of 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
Bluntly Media A Private Company Valuation 6 Case Study Solution has specific strengths that can be used to reduce the dangers, get rid of the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Bluntly Media A Private Company Valuation 6 Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong monetary position enables the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase restrictions for the business in executing its advancement program. The weaknesses of Bluntly Media A Private Company Valuation 6 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional 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 prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing industry is declining because 2008, impacting Bluntly Media A Private Company Valuation 6 Case Study Analysis as well, however the development could be restored by availing certain chances presented in the market. The marketplace opportunities 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 could consider an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually positioned particular risks to Bluntly Media A Private Company Valuation 6 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Bluntly Media A Private Company Valuation 6 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, and so on
• Entrance of new publishing firms in the market along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the financial ratios of CMP might not be calculated. The overall financial performance of the company might be examined by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Bluntly Media A Private Company Valuation 6 Case Study Analysis is growing and the business is rather effective in drawing in a a great deal of consumers at a prospective price.
In addition to it, the second graph which shows the yearly development in the Bluntly Media A Private Company Valuation 6 Case Study Analysis total possessions, shows that the business is rather efficient in adding worth to its possessions through its profits. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis relating to the circulation of total profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the general political forces affecting Bluntly Media A Private Company Valuation 6 Case Study Help company are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Bluntly Media A Private Company Valuation 6 Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall company at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of consumers of the Bluntly Media A Private Company Valuation 6 Case Study Solution. However, the customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Bluntly Media A Private Company Valuation 6 Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. 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 Provider.
The significant suppliers of the Bluntly Media A Private Company Valuation 6 Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 buyers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bluntly Media A Private Company Valuation 6 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same duration as Bluntly Media A Private Company Valuation 6 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant option to avoid the decreasing industry growth. Therefore, introduction of digital publishing might show to be an immediate option with low amount of danger for the business. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should initially gathers the data connected to the consumer demand, the possible markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business must choose one possible sector for its initial offering. It should gather research study that how it could distinguish its digital publishing from the existing rivals' items. The steps above the business ought to go for the initial offering. The company needs to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by thinking about an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
