George Martin At The Boston Consulting Group B Case Study Solution and Analysis
Introduction
George Martin At The Boston Consulting Group B Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing information and interaction services. Significant business sections of the business include; books, periodicals, consultancy and circulation. The company has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports and so on. George Martin At The Boston Consulting Group B Case Study Help has actually ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and George Martin At The Boston Consulting Group B Case Study Help in specific. These aspects include;
• Entryway of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The change 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 important experience, technical resources and the abilities of the business could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
George Martin At The Boston Consulting Group B Case Study Analysis has certain strengths that can be utilized to minimize the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of George Martin At The Boston Consulting Group B Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the business to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its advancement program. The weak points of George Martin At The Boston Consulting Group B Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining considering that 2008, impacting George Martin At The Boston Consulting Group B Case Study Help as well, but the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned specific threats to George Martin At The Boston Consulting Group B Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of George Martin At The Boston Consulting Group B Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk 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.
• Entryway of new publishing companies in the market in addition to existence of high competition increases the risk of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be determined. The total financial efficiency of the company could be analyzed by utilizing the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of George Martin At The Boston Consulting Group B Case Study Help is growing and the business is quite efficient in bring in a large number of clients at a potential rate.
Along with it, the second graph which shows the yearly development in the George Martin At The Boston Consulting Group B Case Study Analysis overall properties, reveals that the company is rather efficient in adding value to its possessions through its revenues. The development in assets shows that the overall worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered information could be the analysis concerning the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. Therefore, it could be said that the general political forces affecting George Martin At The Boston Consulting Group B Case Study Analysis business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative products and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the George Martin At The Boston Consulting Group B Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology in addition to the increase of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting George Martin At The Boston Consulting Group B Case Study Analysis consists of the concerns of environmental 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. However, the presence of intense competitors 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 Industry. The alternative items for the released files is the documents provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the George Martin At The Boston Consulting Group B Case Study Solution include the providers of the paper for publishing 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 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of George Martin At The Boston Consulting Group B Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP publishes similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sections, with a major concentrate on academic publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of George Martin At The Boston Consulting Group B Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as George Martin At The Boston Consulting Group B Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition 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 need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market growth. Therefore, introduction of digital publishing might prove to be an instant option with low quantity of threat for the business. However, the company might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer demand, the potential markets, the government policies and the information related to the competitors provided in the market. If the initial 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 industry is decreasing since 2008, showing a danger to the business's long term presence, but the circumstance can be controlled by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
