The Blonde Salad 2 Case Study Solution and Analysis
Introduction
The Blonde Salad 2 Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular obstacles to the publishing industry in general and The Blonde Salad 2 Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The change 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 important experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Blonde Salad 2 Case Study Solution has particular strengths that can be made use of to minimize the hazards, get rid of the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Blonde Salad 2 Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high value to its clients.
• Strong monetary position enables the company to think about numerous advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase constraints for the business in executing its development program. The weak points of The Blonde Salad 2 Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting The Blonde Salad 2 Case Study Help also, however the growth could be restored by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has positioned certain threats to The Blonde Salad 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Blonde Salad 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing firms in the industry in addition to existence of high competitors increases the threat of losing the customer base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP might not be computed. It could be analyzed from the Appendix III that the yearly total profits of The Blonde Salad 2 Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a big number of customers at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the The Blonde Salad 2 Case Study Analysis overall assets, shows that the company is rather efficient in including value to its properties through its profits. The growth in properties reveals that the overall value of the firm is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be said that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the The Blonde Salad 2 Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall organisation at CPM. China's financial conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful products etc. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the The Blonde Salad 2 Case Study Help. Nevertheless, the customer preferences are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation in addition to the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting The Blonde Salad 2 Case Study Solution includes the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released documents is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital learning increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers 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 entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Blonde Salad 2 Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Blonde Salad 2 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks 2nd and third in numerous market segments, with a major focus on instructional publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Blonde Salad 2 Case Study Analysis quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as The Blonde Salad 2 Case Study Help and CIP. It is also one of the prominent players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant option to avoid the declining market growth. For that reason, intro of digital publishing could show to be an instant service with low amount of danger for the business. However, the business could 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 company should first collects the data connected to the consumer demand, the prospective markets, the federal government guidelines and the data connected to the rivals provided in the market. After that, the business ought to decide one possible sector for its preliminary offering. It should gather research study that how it could separate its digital publishing from the existing competitors' items. The steps above the business need to go for the initial offering. The business should go for the other markets if the preliminary offering shows a success. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a threat to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
