Bluntly Media Valuation Of Private Company Case Study Solution and Analysis
Intro
Bluntly Media Valuation Of Private Company Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and Bluntly Media Valuation Of Private Company Case Study Solution in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bluntly Media Valuation Of Private Company Case Study Analysis has certain strengths that can be utilized to lower the threats, conquer the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Bluntly Media Valuation Of Private Company Case Study Help in the publishing industry i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its clients.
• Strong financial position allows the company to consider several development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Bluntly Media Valuation Of Private Company Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose specific growth plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the development of the publishing market is decreasing because 2008, impacting Bluntly Media Valuation Of Private Company Case Study Analysis too, but the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular hazards to Bluntly Media Valuation Of Private Company Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Bluntly Media Valuation Of Private Company Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. Nevertheless, the total financial efficiency of the company might be examined by using the graphs given up the case Appendices. It might be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Bluntly Media Valuation Of Private Company Case Study Solution is growing and the business is quite efficient in attracting a a great deal of consumers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the Bluntly Media Valuation Of Private Company Case Study Analysis total assets, reveals that the company is quite effective in adding value to its properties through its revenues. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis concerning the circulation of total revenues of the business. Major part of the profits 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 service sectors with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Bluntly Media Valuation Of Private Company Case Study Analysis company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Bluntly Media Valuation Of Private Company Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the overall organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Bluntly Media Valuation Of Private Company Case Study Help includes the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. Nevertheless, the existence of intense competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative products for the released files is the documents provided in the virtual libraries on certain websites. The altering customer choices towards digital learning increase the risk 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 Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bluntly Media Valuation Of Private Company Case Study Analysis consist of the providers of the paper for releasing files. 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 Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Bluntly Media Valuation Of Private Company Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the exact same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 3rd and 2nd in various market sections, with a significant concentrate on educational publications. CIP serves 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 could wean the marketplace share of Bluntly Media Valuation Of Private Company Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Bluntly Media Valuation Of Private Company Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an instant solution to avoid the decreasing market development. Therefore, introduction of digital publishing could prove to be an instant service with low quantity of risk for the business. The business might also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business ought to initially collects the data associated with the consumer need, the possible markets, the government policies and the information associated with the rivals presented in the market. After that, the business needs to decide one possible sector for its preliminary offering. It must collect research that how it might differentiate its digital publishing from the existing competitors' items. The actions above the company must go for the initial offering. The business needs to go for the other markets if the initial offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a threat to the business's long term existence, but the situation can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
