The Brinks Company 2 Case Study Solution and Analysis
Intro
The Brinks Company 2 Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing market in basic and The Brinks Company 2 Case Study Solution in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
The Brinks Company 2 Case Study Solution has specific strengths that can be made use of to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Brinks Company 2 Case Study Help in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its risk and supply high worth to its consumers.
• Strong financial position enables the company to consider several development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase restrictions for the company in implementing its development program. The weaknesses of The Brinks Company 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, impacting The Brinks Company 2 Case Study Solution as well, however the growth might be restored by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually positioned specific hazards to The Brinks Company 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of The Brinks Company 2 Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry along with existence of high competitors increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall profits of The Brinks Company 2 Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in drawing in a big number of consumers at a possible price.
In addition to it, the second chart which reveals the annual development in the The Brinks Company 2 Case Study Help total properties, shows that the business is rather efficient in adding worth to its properties through its earnings. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of total profits of the company. 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 company sections with a possible development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the The Brinks Company 2 Case Study Solution in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books affect the overall service at CPM. However, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Brinks Company 2 Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered 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 might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the industry tends to attract brand-new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The substitute products for the published files is the documents presented in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Brinks Company 2 Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market 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 files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Brinks Company 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in various market sections, with a significant focus on academic publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Brinks Company 2 Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Brinks Company 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the business require an instant service to prevent the declining market development. Introduction of digital publishing might show to be an instant option with low amount of danger for the business. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business must initially gathers the data related to the consumer need, the potential markets, the government policies and the information connected to the competitors presented in the market. After that, the business ought to decide one possible sector for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing rivals' items. The actions above the business ought to go for the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing considering that 2008, showing a risk to the company's long term presence, but the scenario can be managed by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
