Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution and Analysis
Introduction
Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing information and interaction services. Major business sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, regulars, online media, exhibitions, research reports etc. Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Analysis has become a specialized info company and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in basic and Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution in particular. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement 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 important experience, technical resources and the capabilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Help has certain strengths that can be utilized to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the business to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restrictions for the business in executing its advancement program. The weak points of Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, affecting Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Analysis as well, however the growth might be restored by availing specific opportunities provided in the market. The market chances for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured particular hazards to Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be calculated. The general financial performance of the company might be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution is growing and the company is quite efficient in bring in a a great deal of consumers at a prospective rate.
In addition to it, the second graph which reveals the annual development in the Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Help overall assets, reveals that the company is rather effective in adding value to its possessions through its profits. The development in assets shows that the total worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis regarding the circulation of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Analysis organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on particular websites. The changing customer preferences towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution include the providers of the paper for publishing files. 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.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Business Intelligence Advisors Bia Inc Finding The Hidden Meaning In Corporate Disclosures Case Study Solution and CIP. It is also one of the popular players in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant service to avoid the decreasing market development. For that reason, introduction of digital publishing could prove to be an immediate solution with low quantity of risk for the business. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company should first collects the information related to the customer need, the possible markets, the federal government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, but the circumstance can be managed by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
