Bodie Industrial Supply Inc 2 Case Study Solution and Analysis
Bodie Industrial Supply Inc 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Bodie Industrial Supply Inc 2 Case Study Solution has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Bodie Industrial Supply Inc 2 Case Study Help has particular strengths that can be utilized to lower the dangers, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Bodie Industrial Supply Inc 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position enables the business to consider numerous advancement opportunities with no fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which might increase restraints for the business in implementing its development program. The weak points of Bodie Industrial Supply Inc 2 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its dependence over the Chinese markets to attain long term development.
The development of the publishing industry is decreasing considering that 2008, affecting Bodie Industrial Supply Inc 2 Case Study Solution as well, however the growth might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has presented certain hazards to Bodie Industrial Supply Inc 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Bodie Industrial Supply Inc 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the industry along with presence of high competition increases the risk of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall earnings of Bodie Industrial Supply Inc 2 Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is rather efficient in drawing in a big number of clients at a potential cost.
In addition to it, the second chart which shows the yearly development in the Bodie Industrial Supply Inc 2 Case Study Help overall assets, reveals that the business is rather efficient in adding worth to its properties through its incomes. The growth in assets reveals that the total value of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the provided information could be the analysis regarding the circulation of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective development to accomplish its future development goal.
PESTEL analysis might be conducted to learn the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the overall political forces affecting Bodie Industrial Supply Inc 2 Case Study Help company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total 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 needs to focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and technology together with the rise of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Bodie Industrial Supply Inc 2 Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Bodie Industrial Supply Inc 2 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry 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 files at competitive rates.
CMP runs in a highly competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bodie Industrial Supply Inc 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Bodie Industrial Supply Inc 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an instant solution to avoid the declining industry growth. Intro of digital publishing could show to be an immediate service with low amount of risk for the company. The company could likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the data related to the consumer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the new markets.