Bodie Industrial Supply Inc 2 Case Study Solution and Analysis
Bodie Industrial Supply Inc 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; gathering details, processing info and communication services. Significant company sectors of the business include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major products consist of books, regulars, online media, exhibitions, research reports and so on. Bodie Industrial Supply Inc 2 Case Study Solution has actually become a specialized details service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring particular difficulties to the publishing industry in general and Bodie Industrial Supply Inc 2 Case Study Help in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Bodie Industrial Supply Inc 2 Case Study Analysis has certain strengths that can be used to minimize the hazards, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Bodie Industrial Supply Inc 2 Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong monetary position enables the company to consider a number of development chances with no fear of raising fund externally.
Along with the strengths, the business has specific weak points which could increase restraints for the company in implementing its advancement program. The weak points of Bodie Industrial Supply Inc 2 Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business 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 must propose particular expansion strategies to avoid its reliance over the Chinese markets to achieve long term development.
The development of the publishing industry is decreasing since 2008, impacting Bodie Industrial Supply Inc 2 Case Study Help as well, but the development might be restored by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has positioned specific dangers to Bodie Industrial Supply Inc 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Bodie Industrial Supply Inc 2 Case Study Help due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the customer base.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly total revenues of Bodie Industrial Supply Inc 2 Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the company is rather effective in bring in a big number of consumers at a potential rate.
Together with it, the second graph which shows the annual development in the Bodie Industrial Supply Inc 2 Case Study Help total properties, shows that the business is rather effective in adding value to its assets through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis regarding the distribution of overall earnings of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a potential growth to achieve its future development objective.
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be stated that the total political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. 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 satisfy the altering customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces affecting Bodie Industrial Supply Inc 2 Case Study Help consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
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 entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the virtual libraries on certain websites. The altering consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing industry 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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Bodie Industrial Supply Inc 2 Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser 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 needs high quality files at competitive prices.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Bodie Industrial Supply Inc 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise among the popular players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
As the choices are shifting towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. The business 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 needs to initially gathers the information related to the consumer need, the possible 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 method the company would be able to implement its digital publishing program.
The growth of the publishing industry is declining because 2008, showing a threat to the company's long term presence, however the situation can be managed by considering an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.