Shanghai Baolong Automotive Corporation 3 Case Study Solution and Analysis
Shanghai Baolong Automotive Corporation 3 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering information, processing details and communication services. Significant organisation sections of the business consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research reports etc. Shanghai Baolong Automotive Corporation 3 Case Study Help has actually become a specialized info supplier and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Shanghai Baolong Automotive Corporation 3 Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities 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 Solution has certain strengths that can be utilized to decrease the dangers, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Shanghai Baolong Automotive Corporation 3 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position enables the business to think about several advancement opportunities without any fear of raising fund externally.
Along with the strengths, the company has particular weaknesses which might increase restrictions for the business in executing its development program. The weak points of Shanghai Baolong Automotive Corporation 3 Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the growth of the publishing market is decreasing because 2008, affecting Shanghai Baolong Automotive Corporation 3 Case Study Help as well, but the growth might be revived by availing certain opportunities provided in the market. The market chances for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has posed certain dangers to Shanghai Baolong Automotive Corporation 3 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Shanghai Baolong Automotive Corporation 3 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry in addition to existence of high competition increases the danger of losing the consumer base.
Due to absence of data, the monetary ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual overall earnings of Shanghai Baolong Automotive Corporation 3 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in drawing in a big number of customers at a potential rate.
In addition to it, the 2nd graph which reveals the annual growth in the Shanghai Baolong Automotive Corporation 3 Case Study Solution overall assets, reveals that the business is quite effective in adding value to its properties through its profits. The growth in properties reveals that the total worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of overall profits of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a possible growth to attain its future development goal.
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the total political forces affecting Shanghai Baolong Automotive Corporation 3 Case Study Solution business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and innovation along with the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental forces affecting Shanghai Baolong Automotive Corporation 3 Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be utilized to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing industry. 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 Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files presented in the digital libraries on particular sites. The changing consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Shanghai Baolong Automotive Corporation 3 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive prices.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Shanghai Baolong Automotive Corporation 3 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and 2nd in various market segments, with a major concentrate on academic publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the marketplace share of Shanghai Baolong Automotive Corporation 3 Case Study Solution easily in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as Shanghai Baolong Automotive Corporation 3 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are shifting towards digital publishing and the business need an instant service to avoid the decreasing industry development. For that reason, intro of digital publishing could prove to be an immediate service with low quantity of threat for the business. The business could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business needs to first collects the data related to the customer demand, the potential markets, the federal government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, showing a hazard to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.