Gulf Bank Re Building A Bank Case Study Solution and Analysis
Introduction
Gulf Bank Re Building A Bank Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Gulf Bank Re Building A Bank Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns 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 capabilities of the company could be made use of 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
Gulf Bank Re Building A Bank Case Study Help has certain strengths that can be used to minimize the dangers, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Gulf Bank Re Building A Bank Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider numerous development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which could increase restrictions for the business in executing its advancement program. The weak points of Gulf Bank Re Building A Bank Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Gulf Bank Re Building A Bank Case Study Help as well, however the development could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to Gulf Bank Re Building A Bank Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Gulf Bank Re Building A Bank Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by utilizing specific strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total profits of Gulf Bank Re Building A Bank Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is rather efficient in bring in a large number of consumers at a possible cost.
In addition to it, the second chart which shows the annual development in the Gulf Bank Re Building A Bank Case Study Solution total possessions, shows that the business is rather effective in adding value to its assets through its earnings. The growth in assets reveals that the overall value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of total incomes of the business. Major 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 company might move towards other company segments with a potential development to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. For that reason, it could be said that the total political forces affecting Gulf Bank Re Building A Bank Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Gulf Bank Re Building A Bank Case Study Analysis in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market. Together with it, the financial policies connected to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Gulf Bank Re Building A Bank Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Gulf Bank Re Building A Bank Case Study Solution consists of the issues of ecological neighborhoods over the use 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 must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning 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 Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on specific websites. The altering customer preferences towards digital learning increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Gulf Bank Re Building A Bank Case Study Solution include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Gulf Bank Re Building A Bank Case Study Analysis 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 period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and 3rd in different market segments, with a major focus on academic publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Gulf Bank Re Building A Bank Case Study Analysis easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Gulf Bank Re Building A Bank Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 sectors to the new one can lead the company to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company need an instant solution to avoid the declining industry growth. Therefore, intro of digital publishing might prove to be an instant solution with low amount of threat for the business. The business might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first collects the information connected to the customer demand, the possible markets, the federal government regulations and the information associated with the rivals provided in the market. After that, the business must decide one potential section for its initial offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the company must choose the initial offering. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term existence, however 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 immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
