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Breitling Watches 4 Case Study Solution and Analysis


Introduction

Breitling Watches 4 Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.

Vital Concerns

CMP has spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring particular challenges to the publishing industry in general and Breitling Watches 4 Case Study Solution in particular. These factors include;

• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
Executive Summary
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this situation? Do the long important 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 4 Case Study Analysis has particular strengths that can be used to minimize the dangers, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Breitling Watches 4 Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its consumers.
• Strong monetary position allows the business to consider several advancement chances without any fear of raising fund externally.

Weaknesses

Along with the strengths, the business has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Breitling Watches 4 Case Study Solution are provided as follows;

• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing industry is decreasing considering that 2008, impacting Breitling Watches 4 Case Study Analysis as well, however the growth might be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;

• The company might also present 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 using its large financial resources.

Dangers

The changing macro trends in the market and increasing competitors in the publishing market has actually positioned specific hazards to Breitling Watches 4 Case Study Solution consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. virtual libraries might cause declining market share of Breitling Watches 4 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promotion, quality products, and so on
• Entrance of new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.

Monetary Analysis.
Swot Analysis
The company has a rather competitive financial efficiency. Due to lack of data, the monetary ratios of CMP might not be calculated. The total financial efficiency of the business could be analyzed by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Breitling Watches 4 Case Study Solution is growing and the company is quite effective in attracting a large number of customers at a potential cost.

Along with it, the second chart which reveals the annual growth in the Breitling Watches 4 Case Study Solution overall properties, reveals that the business is rather effective in including value to its properties through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).

Another financial analysis of the company utilizing the given information could be the analysis relating to the distribution of total earnings of the company. Major 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 business might move towards other business sectors with a possible development to accomplish its future advancement goal.

PESTEL Analysis

PESTEL analysis could be carried out to learn the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Breitling Watches 4 Case Study Solution service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.

Economical.

Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.

Social and Demographical.

Social and demographical forces include the population development, the customer's choices towards reading useful products etc. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Breitling Watches 4 Case Study Solution. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer preferences.

Technological.

Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP items, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Breitling Watches 4 Case Study Help includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Model).

Porter's Five Forces Model might be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.

Risk of New Entrants.

Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing market. The presence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.

Risk of Substitution.

Threat of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the digital libraries on specific websites. The altering consumer preferences towards digital learning increase the threat of alternative for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the Breitling Watches 4 Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser 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 buyers requires high quality files at competitive prices.

Rivals Analysis.

CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Breitling Watches 4 Case Study Analysis include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a risk 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 market share of CMP quickly in the present market scenario.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also among the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.

Cons

• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the company need an immediate solution to avoid the declining market development. The company could also think about the expansion 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 associated with the consumer need, the prospective markets, the federal government policies and the data related to the competitors presented in the market. After that, the business ought to decide one possible section for its preliminary offering. It needs to gather research study that how it might separate its digital publishing from the existing rivals' items. After all the actions above the company must go for the preliminary offering. The business needs to go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.

Conclusion

Although, the growth of the publishing market is decreasing since 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.

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