Bowl Of Good Defining The Partnership Case Study Solution and Analysis
Intro
Bowl Of Good Defining The Partnership Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP provides a number of services including; gathering details, processing information and communication services. Major company sections of the business consist of; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major products include books, regulars, online media, exhibits, research study reports and so on. Bowl Of Good Defining The Partnership Case Study Solution has ended up being a specialized details provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and Bowl Of Good Defining The Partnership Case Study Help in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 capabilities of the business could be utilized 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
Bowl Of Good Defining The Partnership Case Study Solution has certain strengths that can be utilized to minimize the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Bowl Of Good Defining The Partnership Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong financial position enables the company to think about several development chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which could increase restrictions for the business in executing its advancement program. The weak points of Bowl Of Good Defining The Partnership Case Study Analysis are offered as follows;
• Despite of being a science and innovation 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 development. It must propose certain growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, impacting Bowl Of Good Defining The Partnership Case Study Analysis too, however the development might be restored by availing certain chances presented in the market. The marketplace chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Bowl Of Good Defining The Partnership Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Bowl Of Good Defining The Partnership Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual total profits of Bowl Of Good Defining The Partnership Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is rather effective in bring in a large number of clients at a possible rate.
Along with it, the second chart which shows the annual growth in the Bowl Of Good Defining The Partnership Case Study Help overall possessions, reveals that the company is rather efficient in adding worth to its assets through its revenues. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis regarding the circulation of overall revenues of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces impacting Bowl Of Good Defining The Partnership Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and technology along with the rise of digital publishing could decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Bowl Of Good Defining The Partnership Case Study Analysis consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files presented in the digital libraries on certain websites. The altering consumer preferences towards digital learning increase the danger of replacement for the industry.
Competitive Rivalry.
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 rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Bowl Of Good Defining The Partnership Case Study Help include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the presence 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 Bowl Of Good Defining The Partnership Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a major concentrate on educational publications. 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 might wean the marketplace share of Bowl Of Good Defining The Partnership Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate solution to prevent the decreasing market growth. Therefore, introduction of digital publishing might show to be an instant option with low quantity of danger for the company. Nevertheless, the company might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the data related to the customer need, the potential markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering shows a success, the business ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a danger to the company's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company might think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
