Bolt Newspapers Is There A Future In Print Media Case Study Solution and Analysis
Introduction
Bolt Newspapers Is There A Future In Print Media Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing details and communication services. Significant organisation sectors of the business consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. Bolt Newspapers Is There A Future In Print Media Case Study Help has become a specialized info service provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Bolt Newspapers Is There A Future In Print Media Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in general and CMP in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bolt Newspapers Is There A Future In Print Media Case Study Analysis has particular strengths that can be used to reduce the threats, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Bolt Newspapers Is There A Future In Print Media Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong monetary position allows the company to think about numerous advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restraints for the business in implementing its development program. The weaknesses of Bolt Newspapers Is There A Future In Print Media Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Bolt Newspapers Is There A Future In Print Media Case Study Help also, but the development might be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast funds.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has postured certain risks to Bolt Newspapers Is There A Future In Print Media Case Study Help consisting of;( 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 Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing particular methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual total revenues of Bolt Newspapers Is There A Future In Print Media Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the business is quite efficient in drawing in a big number of consumers at a potential cost.
In addition to it, the 2nd graph which shows the annual development in the Bolt Newspapers Is There A Future In Print Media Case Study Help total assets, reveals that the business is quite effective in including value to its possessions through its revenues. The growth in possessions shows that the overall value of the company is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis relating to the circulation of total profits of the company. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a possible growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Bolt Newspapers Is There A Future In Print Media Case Study Analysis company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Bolt Newspapers Is There A Future In Print Media Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books impact the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Bolt Newspapers Is There A Future In Print Media Case Study Solution consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Bolt Newspapers Is There A Future In Print Media Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Bolt Newspapers Is There A Future In Print Media Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Bolt Newspapers Is There A Future In Print Media Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand 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 industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business require an instant option to avoid the decreasing industry development. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information connected to the customer demand, the prospective markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the business should choose one prospective segment for its preliminary offering. It needs to gather research that how it might separate its digital publishing from the existing rivals' items. The actions above the business need to go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
