Breitling Watches Case Study Solution and Analysis
Breitling Watches Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting details, processing details and interaction services. Significant company sections of the company include; books, regulars, consultancy and distribution. The company has a large product portfolio and its significant items consist of books, periodicals, online media, exhibits, research study reports etc. Breitling Watches Case Study Analysis has actually ended up being a specialized information company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Breitling Watches Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement 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 situation? Do the long valuable experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Breitling Watches Case Study Solution has specific strengths that can be utilized to reduce the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Breitling Watches Case Study Help in the publishing industry 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 generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the company to consider numerous advancement opportunities without any fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which could increase constraints for the company in implementing its development program. The weak points of Breitling Watches Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, 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 should propose particular growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
The development of the publishing industry is declining since 2008, impacting Breitling Watches Case Study Help as well, however the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to Breitling Watches Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Breitling Watches Case Study Help due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain strategies like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry in addition to presence of high competition increases the danger of losing the client base.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. The general financial performance of the company might be analyzed by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Breitling Watches Case Study Help is growing and the company is rather efficient in attracting a a great deal of consumers at a possible price.
In addition to it, the second graph which reveals the yearly development in the Breitling Watches Case Study Help overall possessions, reveals that the business is rather effective in adding worth to its properties through its earnings. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business using the given information could be the analysis relating to the distribution of total profits of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service sections with a prospective development to attain its future advancement objective.
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It might be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards checking out useful materials etc. China has the greatest population worldwide with a high population growth, showing the increasing variety of customers of the Breitling Watches Case Study Help. The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental forces affecting Breitling Watches Case Study Solution consists of the issues of ecological neighborhoods over the usage 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 should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized 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 5 Forces Model might be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on particular sites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Breitling Watches Case Study Analysis consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP runs in an extremely competitive industry 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 Breitling Watches Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in numerous market segments, with a significant focus on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Breitling Watches Case Study Help quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established 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 gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company need an instant service to avoid the declining industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer demand, the potential markets, the government policies and the information related to the rivals provided in the market. If the initial offering proves 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.
The growth of the publishing market is decreasing considering that 2008, showing a danger to the business's long term existence, but the scenario can be managed by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.