Shanghai Baolong Automotive Corporation 4 Case Study Solution and Analysis
Intro
Shanghai Baolong Automotive Corporation 4 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and Shanghai Baolong Automotive Corporation 4 Case Study Help in specific. These aspects include;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
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 scenario? Do the long valuable experience, technical resources and the capabilities 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
Shanghai Baolong Automotive Corporation 4 Case Study Help has particular strengths that can be made use of to reduce the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Shanghai Baolong Automotive Corporation 4 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position enables the company to consider numerous development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weak points which might increase constraints for the company in implementing its advancement program. The weak points of Shanghai Baolong Automotive Corporation 4 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Shanghai Baolong Automotive Corporation 4 Case Study Solution as well, however the development might be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to Shanghai Baolong Automotive Corporation 4 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause decreasing market share of Shanghai Baolong Automotive Corporation 4 Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors 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 certain strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The overall monetary performance of the company could be examined by using the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly overall profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Shanghai Baolong Automotive Corporation 4 Case Study Solution is growing and the business is rather effective in drawing in a large number of clients at a prospective cost.
Along with it, the 2nd graph which reveals the annual development in the Shanghai Baolong Automotive Corporation 4 Case Study Help overall properties, shows that the company is quite effective in adding worth to its possessions through its profits. The development in properties shows that the overall value of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the circulation of total revenues of the business. Huge 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 company could move towards other business sectors with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals 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. Therefore, it could be stated that the overall political forces affecting Shanghai Baolong Automotive Corporation 4 Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Shanghai Baolong Automotive Corporation 4 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents presented in the virtual libraries on certain sites. The altering customer preferences towards digital knowing increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Shanghai Baolong Automotive Corporation 4 Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer 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 operates in a highly competitive market with the presence of large number of competitors. The business 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 Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also among the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an instant option to prevent the decreasing market development. Therefore, intro of digital publishing might show to be an instant service with low amount of danger for the company. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the consumer need, the potential markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business ought to choose one potential section for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing competitors' products. After all the actions above the company need to go for the preliminary offering. The company should go for the other markets if the preliminary offering shows a success. In this way the company would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is declining because 2008, revealing a threat to the company's long term existence, however the situation can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
