Bolt Newspapers Is There A Future In Print Media Case Study Solution and Analysis
Bolt Newspapers Is There A Future In Print Media Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Bolt Newspapers Is There A Future In Print Media Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
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 valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Bolt Newspapers Is There A Future In Print Media Case Study Help has specific strengths that can be utilized to minimize the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Bolt Newspapers Is There A Future In Print Media Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position allows the business to consider a number of development opportunities with no worry of raising fund externally.
Along with the strengths, the business has particular weak points which might increase constraints for the business in implementing its advancement program. The weak points of Bolt Newspapers Is There A Future In Print Media Case Study Solution are offered as follows;
• Despite of being a science and innovation 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 growth. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is decreasing given that 2008, impacting Bolt Newspapers Is There A Future In Print Media Case Study Solution also, however the growth could be restored by availing certain chances provided in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro trends in the market and increasing competition in the publishing market has actually postured certain hazards to Bolt Newspapers Is There A Future In Print Media Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Bolt Newspapers Is There A Future In Print Media Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the risk of losing the client base.
Due to absence of data, the financial ratios of CMP might not be determined. It could be evaluated from the Appendix III that the annual overall profits of Bolt Newspapers Is There A Future In Print Media Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a prospective price.
Together with it, the 2nd chart which shows the yearly development in the Bolt Newspapers Is There A Future In Print Media Case Study Solution total assets, reveals that the company is quite effective in adding worth to its possessions through its revenues. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the offered data could be the analysis relating to the distribution of total incomes of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a potential development to attain its future advancement goal.
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the general political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards checking out informative products etc. China has the highest population in the world with a high population growth, showing the increasing number of consumers of the Bolt Newspapers Is There A Future In Print Media Case Study Help. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Bolt Newspapers Is There A Future In Print Media Case Study Solution consists of the concerns of environmental 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 utilized while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the published files is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the danger of alternative for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Bolt Newspapers Is There A Future In Print Media Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive costs.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Bolt Newspapers Is There A Future In Print Media Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is also among the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the decreasing market growth. Introduction of digital publishing could show to be an immediate solution with low amount of risk for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is declining given that 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.