Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution and Analysis
Bluntly Media Pvt Ltd A Private Company Valuation Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and CMP in particular. These factors include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution has specific strengths that can be made use of to lower the threats, overcome the weakness and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Bluntly Media Pvt Ltd A Private Company Valuation Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position enables the business to think about numerous advancement opportunities without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in implementing its advancement program. The weaknesses of Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
The growth of the publishing industry is declining given that 2008, affecting Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution as well, however the development might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competition in the publishing market has actually postured specific risks to Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Bluntly Media Pvt Ltd A Private Company Valuation 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 competitors can acquire a strong customer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry together with existence of high competition increases the threat of losing the consumer base.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the yearly overall incomes of Bluntly Media Pvt Ltd A Private Company Valuation Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the company is rather efficient in drawing in a large number of clients at a potential cost.
In addition to it, the 2nd graph which reveals the yearly growth in the Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help total properties, reveals that the company is rather efficient in adding value to its properties through its incomes. The growth in possessions shows that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis regarding the distribution of total earnings of the business. Huge part of the incomes 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 segments with a prospective growth to achieve its future advancement goal.
PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the general political forces impacting Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help service are high. The federal 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 Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand 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 economic conditions are rather beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the rise of digital publishing could lower the need for the CMP products, if particular actions would not be taken quickly.
Ecological forces impacting Bluntly Media Pvt Ltd A Private Company Valuation Case Study Analysis consists of the concerns of ecological communities 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 needs to not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive rivalry in the publishing market is high. The existence of large number 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Bluntly Media Pvt Ltd A Private Company Valuation Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers needs high quality documents at competitive prices.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP publishes similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in different market segments, with a major focus on instructional publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Bluntly Media Pvt Ltd A Private Company Valuation Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Bluntly Media Pvt Ltd A Private Company Valuation Case Study Help and CIP. It is also one of the prominent gamers in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business ought to first collects the data associated with the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. After that, the company ought to choose one prospective section for its preliminary offering. It ought to collect research study that how it could distinguish its digital publishing from the existing rivals' items. After all the steps above the business need to choose the preliminary offering. The company must go for the other markets if the initial offering shows a success. In this method the company would have the ability to execute its digital publishing program.
Although, the growth of the publishing market is decreasing given that 2008, revealing a threat to the company's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.