Gulf Bank Re Building A Bank Case Study Solution and Analysis
Gulf Bank Re Building A Bank Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting details, processing details and interaction services. Significant service sections of the company consist of; books, periodicals, consultancy and circulation. The business has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports and so on. Gulf Bank Re Building A Bank Case Study Help has become a specialized details provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Gulf Bank Re Building A Bank Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions 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 capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Gulf Bank Re Building A Bank Case Study Solution has particular strengths that can be used to minimize the hazards, overcome the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Gulf Bank Re Building A Bank Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high value to its consumers.
• Strong monetary position permits the company to think about a number of advancement chances without any fear of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Gulf Bank Re Building A Bank Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Although, the growth of the publishing industry is declining since 2008, impacting Gulf Bank Re Building A Bank Case Study Solution also, however the development could be revived by availing particular chances presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing market has postured certain threats to Gulf Bank Re Building A Bank Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Gulf Bank Re Building A Bank Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal 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 consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the risk of losing the client base.
Due to lack of information, the financial ratios of CMP might not be computed. It could be evaluated from the Appendix III that the yearly total profits of Gulf Bank Re Building A Bank Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite effective in attracting a large number of consumers at a possible price.
Together with it, the 2nd graph which shows the yearly growth in the Gulf Bank Re Building A Bank Case Study Help total properties, shows that the business is quite effective in including value to its properties through its earnings. The growth in assets reveals that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information might be the analysis relating to the distribution of total incomes of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business segments with a prospective growth to achieve its future development goal.
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the highest population worldwide with a high population development, revealing the increasing number of consumers of the Gulf Bank Re Building A Bank Case Study Help. The consumer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing could lower the demand for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Gulf Bank Re Building A Bank Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents presented in the digital libraries on specific sites. The changing customer choices towards digital learning increase the danger of alternative for the market.
Competitive competition in the publishing market is high. The existence of a great deal 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 participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Gulf Bank Re Building A Bank Case Study Analysis include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Gulf Bank Re Building A Bank Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP publishes comparable kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in various market sectors, with a major concentrate 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 Gulf Bank Re Building A Bank Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Gulf Bank Re Building A Bank Case Study Solution and CIP. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company require an immediate service to avoid the decreasing market growth. Therefore, introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. However, the company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a hazard to the business's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.