Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution and Analysis
Introduction
Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Help has actually spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
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 scenario? Do the long valuable experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Analysis has certain strengths that can be used to reduce the dangers, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the business to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weak points which might increase restrictions for the business in executing its development program. The weaknesses of Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 ought to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining because 2008, impacting Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Analysis as well, however the growth could be restored by availing particular chances presented in the market. The market chances for CMP consist of;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has posed particular threats to Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. However, the general financial performance of the business could be analyzed by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Help is growing and the business is rather efficient in bring in a a great deal of customers at a potential price.
Along with it, the 2nd graph which reveals the yearly development in the Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Help overall properties, reveals that the company is rather efficient in adding value to its possessions through its earnings. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis concerning the distribution of total earnings of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. 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 preferences towards checking out informative materials and so on. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing could decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations 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 Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the released files is the files provided in the digital libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Analysis include the suppliers of the paper for releasing files. 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.
Negotiating power of purchaser in the publishing market 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 costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Legacy Transition And Growth The Case Of Bridge Housing Corporation Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the brand-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 along with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an immediate service to avoid the decreasing industry growth. Intro of digital publishing might show to be an immediate service with low amount of threat for the company. However, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business must first gathers the data connected to the customer demand, the potential markets, the government policies and the information associated with the competitors presented in the market. After that, the business needs to choose one potential sector for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the business must go for the preliminary offering. The company must go for the other markets if the initial offering proves a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the company's long term existence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
