The Bridgespan Group Chapter 2 2 Case Study Solution and Analysis
Intro
The Bridgespan Group Chapter 2 2 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and The Bridgespan Group Chapter 2 2 Case Study Analysis in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing 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 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 strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Bridgespan Group Chapter 2 2 Case Study Help has certain strengths that can be made use of to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of The Bridgespan Group Chapter 2 2 Case Study Analysis in the publishing industry i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high value to its consumers.
• Strong financial position allows the business to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the business in implementing its advancement program. The weak points of The Bridgespan Group Chapter 2 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining because 2008, impacting The Bridgespan Group Chapter 2 2 Case Study Solution as well, however the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing industry has presented specific threats to The Bridgespan Group Chapter 2 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of The Bridgespan Group Chapter 2 2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the annual overall earnings of The Bridgespan Group Chapter 2 2 Case Study Solution throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a large number of consumers at a possible price.
In addition to it, the 2nd graph which shows the yearly growth in the The Bridgespan Group Chapter 2 2 Case Study Analysis overall assets, shows that the company is quite effective in including worth to its possessions through its revenues. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the distribution of total revenues of the business. Major part of the incomes 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 sections with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It might be said that the total political forces impacting CMP company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the The Bridgespan Group Chapter 2 2 Case Study Analysis in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies associated with the import of books affect the total service at CPM. However, China's financial conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Bridgespan Group Chapter 2 2 Case Study Solution includes the concerns of environmental neighborhoods 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 must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Risk of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Bridgespan Group Chapter 2 2 Case Study Solution consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Bridgespan Group Chapter 2 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as The Bridgespan Group Chapter 2 2 Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition 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 company to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business require an instant option to prevent the declining industry development. Intro of digital publishing could show to be an instant service with low quantity of threat for the business. The business might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer demand, the prospective markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a danger to the business's long term presence, however the circumstance can be managed by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
