Breitling Watches 2 Case Study Solution and Analysis
Introduction
Breitling Watches 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing details and interaction services. Significant company sectors of the company consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports and so on. Breitling Watches 2 Case Study Analysis has become a specialized info supplier and a large extensive Science and Technology 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 smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and Breitling Watches 2 Case Study Analysis in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Breitling Watches 2 Case Study Help has particular strengths that can be utilized to reduce the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Breitling Watches 2 Case Study Analysis in the publishing industry i.e. 60 years permits the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the company to consider a number of advancement chances with no worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Breitling Watches 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, 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 development. It should propose specific growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, impacting Breitling Watches 2 Case Study Analysis too, but the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned specific hazards to Breitling Watches 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Breitling Watches 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall incomes of Breitling Watches 2 Case Study Help 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 business is rather effective in bring in a big number of consumers at a prospective price.
Together with it, the 2nd graph which shows the annual development in the Breitling Watches 2 Case Study Solution total properties, shows that the business is quite efficient in including worth to its properties through its earnings. The development in properties reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered information could be the analysis regarding the circulation of total incomes of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted 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 company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the overall political forces impacting Breitling Watches 2 Case Study Solution business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Breitling Watches 2 Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the files provided in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Breitling Watches 2 Case Study Analysis include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer 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 costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Breitling Watches 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major concentrate on instructional publications. CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Breitling Watches 2 Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also among the prominent players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are shifting towards digital publishing and the company need an instant service to prevent the decreasing industry growth. Intro of digital publishing might show to be an immediate option with low amount of threat for the company. However, the business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially gathers the data related to the consumer demand, the possible markets, the government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, showing a threat to the company's long term existence, but the situation can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
