Shanghai Baolong Automotive Corporation 3 Case Study Solution and Analysis
Shanghai Baolong Automotive Corporation 3 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing details and interaction services. Major organisation sections of the business include; books, regulars, consultancy and circulation. The company has a large item portfolio and its significant items consist of books, periodicals, online media, exhibits, research reports etc. Shanghai Baolong Automotive Corporation 3 Case Study Analysis has actually ended up being a specialized details service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Shanghai Baolong Automotive Corporation 3 Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing market in general and CMP in particular. These factors consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Shanghai Baolong Automotive Corporation 3 Case Study Help has specific strengths that can be used to lower the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Shanghai Baolong Automotive Corporation 3 Case Study Analysis in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong monetary position allows the company to think about a number of advancement chances with no fear of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weaknesses of Shanghai Baolong Automotive Corporation 3 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term development.
The growth of the publishing market is decreasing considering that 2008, impacting Shanghai Baolong Automotive Corporation 3 Case Study Solution as well, but the development might be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned specific hazards to Shanghai Baolong Automotive Corporation 3 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Shanghai Baolong Automotive Corporation 3 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using particular techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the danger of losing the consumer base.
Due to lack of information, the monetary ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall profits of Shanghai Baolong Automotive Corporation 3 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is quite efficient in drawing in a big number of clients at a possible rate.
Along with it, the second chart which reveals the yearly growth in the Shanghai Baolong Automotive Corporation 3 Case Study Help total assets, reveals that the company is quite efficient in adding value to its properties through its earnings. The development in properties shows that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the offered information might be the analysis regarding the circulation of overall revenues of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a potential development to achieve its future advancement objective.
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be said that the total political forces affecting CMP business are high. The federal government policies concerning 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 prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces impacting Shanghai Baolong Automotive Corporation 3 Case Study Solution consists of the concerns of ecological communities 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 ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the risk of replacement for the market.
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. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Shanghai Baolong Automotive Corporation 3 Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Shanghai Baolong Automotive Corporation 3 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the same period as Shanghai Baolong Automotive Corporation 3 Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• 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 items in the market.
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 advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company need an immediate solution to prevent the decreasing market development. Therefore, introduction of digital publishing could show to be an immediate service with low quantity of danger for the business. However, the company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially gathers the information related to the customer demand, the potential markets, the government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Although, the development of the publishing market is declining considering that 2008, showing a danger to the business's long term existence, however the circumstance can be controlled by thinking about a development plan in the future. The business could consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.