Shanghai Baolong Automotive Corporation 4 Case Study Solution and Analysis
Shanghai Baolong Automotive Corporation 4 Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details service provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Although, Shanghai Baolong Automotive Corporation 4 Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The transformation 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 valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Shanghai Baolong Automotive Corporation 4 Case Study Help has certain strengths that can be used to minimize the risks, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Shanghai Baolong Automotive Corporation 4 Case Study Solution in the publishing market i.e. 60 years allows the business to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong financial position allows the business to think about numerous development opportunities without any worry of raising fund externally.
In addition to the strengths, the company has certain weak points which might increase restraints for the company in executing its development program. The weak points of Shanghai Baolong Automotive Corporation 4 Case Study Analysis are offered as follows;
• Despite of being a science and technology 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 growth. It must propose certain growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing considering that 2008, affecting Shanghai Baolong Automotive Corporation 4 Case Study Solution also, however the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned certain hazards to Shanghai Baolong Automotive Corporation 4 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Shanghai Baolong Automotive Corporation 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence 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 customer base by using specific techniques like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the customer base.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. However, the general financial efficiency of the business might be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Shanghai Baolong Automotive Corporation 4 Case Study Analysis is growing and the company is rather effective in drawing in a a great deal of consumers at a potential rate.
In addition to it, the 2nd graph which reveals the annual development in the Shanghai Baolong Automotive Corporation 4 Case Study Help overall possessions, shows that the company is quite efficient in including worth to its properties through its profits. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis relating to the distribution of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a prospective growth to achieve its future development goal.
PESTEL analysis might be performed to find out the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in general and the Shanghai Baolong Automotive Corporation 4 Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the overall service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation along with the increase 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 4 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 non reusable and the ink used while publishing should not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially 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.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the files presented in the digital libraries on particular sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Shanghai Baolong Automotive Corporation 4 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive costs.
CMP runs in a highly competitive market with the presence of large number of rivals. 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 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Shanghai Baolong Automotive Corporation 4 Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its products in the market.
With the deep analysis of the external and internal environment of the business together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are moving towards digital publishing and the company require an instant service to prevent the declining industry growth. Introduction of digital publishing might prove to be an instant solution with low quantity of risk for the company. However, the business could also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to first collects the information related to the customer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term presence, but the scenario can be controlled by thinking about a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.