Bluntly Media Valuation Of Private Company 3 Case Study Solution and Analysis
Bluntly Media Valuation Of Private Company 3 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing info and interaction services. Major company segments of the company include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Bluntly Media Valuation Of Private Company 3 Case Study Help has ended up being a specialized information supplier and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Bluntly Media Valuation Of Private Company 3 Case Study Solution has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
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 situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Bluntly Media Valuation Of Private Company 3 Case Study Solution has specific strengths that can be utilized to minimize the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Bluntly Media Valuation Of Private Company 3 Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and offer high value to its consumers.
• Strong financial position permits the company to think about a number of advancement opportunities with no fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its advancement program. The weak points of Bluntly Media Valuation Of Private Company 3 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is declining because 2008, affecting Bluntly Media Valuation Of Private Company 3 Case Study Analysis as well, but the development might be restored by availing specific chances provided in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has presented specific threats to Bluntly Media Valuation Of Private Company 3 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Bluntly Media Valuation Of Private Company 3 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal 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 using specific techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with existence of high competitors increases the threat of losing the customer base.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly overall earnings of Bluntly Media Valuation Of Private Company 3 Case Study Analysis during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is quite effective in attracting a large number of customers at a prospective rate.
Together with it, the 2nd chart which reveals the annual growth in the Bluntly Media Valuation Of Private Company 3 Case Study Analysis total assets, reveals that the company is quite effective in adding worth to its possessions through its revenues. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered information could be the analysis regarding the distribution of overall earnings of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sectors with a possible growth to attain its future development goal.
PESTEL analysis could be carried out to learn the different 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 business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Bluntly Media Valuation Of Private Company 3 Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological forces affecting the CMP consist of the technological development in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Bluntly Media Valuation Of Private Company 3 Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The alternative items for the published documents is the documents provided in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Bluntly Media Valuation Of Private Company 3 Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 purchasers requires high quality documents at competitive rates.
CMP runs in an extremely competitive market with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bluntly Media Valuation Of Private Company 3 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and second in various market segments, with a major concentrate on educational publications. CIP serves as a risk for CMP as it might 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 Valuation Of Private Company 3 Case Study Help easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate service to avoid the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first gathers the information related to the consumer need, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing market is decreasing since 2008, showing a risk to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.