George Martin At The Boston Consulting Group C Case Study Solution and Analysis
Introduction
George Martin At The Boston Consulting Group C Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing information and communication services. Significant business segments of the company consist of; books, periodicals, consultancy and distribution. The company has a vast item portfolio and its significant products consist of books, regulars, online media, exhibits, research study reports and so on. George Martin At The Boston Consulting Group C Case Study Analysis has ended up being a specialized details service provider and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, George Martin At The Boston Consulting Group C Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 business could be used 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
George Martin At The Boston Consulting Group C Case Study Help has specific strengths that can be utilized to reduce the threats, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of George Martin At The Boston Consulting Group C Case Study Solution in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the company to think about a number of development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase restraints for the business in executing its advancement program. The weaknesses of George Martin At The Boston Consulting Group C Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting George Martin At The Boston Consulting Group C Case Study Analysis as well, however the growth could be restored by availing certain opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise introduce Digital Publishing by using 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 lower its dependence over Chinese markets by using its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has positioned particular threats to George Martin At The Boston Consulting Group C Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of George Martin At The Boston Consulting Group C Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence 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 utilizing specific techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry in addition to presence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive monetary performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The general monetary performance of the company might be analyzed by using the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of George Martin At The Boston Consulting Group C Case Study Analysis is growing and the company is rather efficient in bring in a large number of consumers at a potential cost.
Along with it, the 2nd graph which shows the annual growth in the George Martin At The Boston Consulting Group C Case Study Analysis overall possessions, reveals that the company is quite efficient in adding value to its assets through its incomes. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information could be the analysis regarding the circulation of overall incomes of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business segments with a possible development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of the people 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 might be stated that the general political forces affecting George Martin At The Boston Consulting Group C Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the George Martin At The Boston Consulting Group C Case Study Solution in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general business at CPM. However, China's financial conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading informative products etc. China has the highest population worldwide with a high population development, showing the increasing variety of customers of the George Martin At The Boston Consulting Group C Case Study Analysis. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting George Martin At The Boston Consulting Group C Case Study Solution consists of the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement items for the published files is the documents provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the George Martin At The Boston Consulting Group C Case Study Help include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of George Martin At The Boston Consulting Group C Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
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 present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors 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 business to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate option to prevent the declining industry development. The business could likewise 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 first collects the information related to the customer demand, the possible markets, the government regulations and the data associated with the competitors presented in the market. After that, the business needs to choose one possible segment for its initial offering. It must collect research that how it might separate its digital publishing from the existing competitors' items. After all the steps above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term existence, but the situation can be controlled by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
