Breitling Watches 4 Case Study Solution and Analysis
Introduction
Breitling Watches 4 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing details and interaction services. Significant company sections of the company include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. Breitling Watches 4 Case Study Solution has ended up being a specialized information supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Breitling Watches 4 Case Study Solution has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities 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 Solution has particular strengths that can be used to lower the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Breitling Watches 4 Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position allows the company to consider numerous development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restrictions for the business in executing its advancement program. The weaknesses of Breitling Watches 4 Case Study Help are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining considering that 2008, impacting Breitling Watches 4 Case Study Help as well, however the development could be revived by availing particular chances presented in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing 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 minimize its reliance over Chinese markets by using its vast funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has presented particular threats to Breitling Watches 4 Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Breitling Watches 4 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the annual total incomes of Breitling Watches 4 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of CMP is growing and the company is quite efficient in attracting a large number of customers at a prospective rate.
Together with it, the 2nd graph which reveals the yearly development in the Breitling Watches 4 Case Study Help total assets, shows that the company is rather efficient in including worth to its assets through its revenues. The development in possessions shows that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis regarding the distribution of total incomes of the company. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Breitling Watches 4 Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. 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 conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Breitling Watches 4 Case Study Analysis consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design might be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents presented in the virtual libraries on particular websites. The changing customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Competition.
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 competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Breitling Watches 4 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Breitling Watches 4 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Breitling Watches 4 Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Danger 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 existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business need an immediate service to prevent the declining market development. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a threat to the company's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
