Bmw 7 Series Project A Case Study Solution and Analysis
Intro
Bmw 7 Series Project A Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing information and communication services. Significant company segments of the business include; books, periodicals, consultancy and circulation. The business has a large product portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. Bmw 7 Series Project A Case Study Help has ended up being a specialized information provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and Bmw 7 Series Project A Case Study Analysis in specific. These factors include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bmw 7 Series Project A Case Study Help has specific strengths that can be utilized to lower the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Bmw 7 Series Project A Case Study Help in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the business to think about a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weak points which might increase restraints for the business in executing its development program. The weak points of Bmw 7 Series Project A Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Bmw 7 Series Project A Case Study Analysis as well, however the growth might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has postured specific dangers to Bmw 7 Series Project A Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Bmw 7 Series Project A Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain methods like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. However, the total financial performance of the company might be examined by using the charts given up the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Bmw 7 Series Project A Case Study Help is growing and the business is rather effective in attracting a large number of consumers at a possible rate.
Together with it, the second graph which shows the annual growth in the Bmw 7 Series Project A Case Study Help total possessions, reveals that the company is rather effective in including worth to its assets through its incomes. The development in assets shows that the total worth of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Bmw 7 Series Project A Case Study Help company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Bmw 7 Series Project A Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine 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 beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Bmw 7 Series Project A Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might reduce the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Bmw 7 Series Project A Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Bmw 7 Series Project A Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Bmw 7 Series Project A Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Bmw 7 Series Project A Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an instant solution to prevent the decreasing market growth. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the data related to the customer need, the prospective markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining since 2008, showing a danger to the business's long term presence, however the scenario 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 entryway in the brand-new markets.
