The Business Development Manager 2 Case Study Solution and Analysis
Intro
The Business Development Manager 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and interaction services. Significant company sections of the business include; books, regulars, consultancy and circulation. The business has a large product portfolio and its major items include books, periodicals, online media, exhibitions, research study reports etc. The Business Development Manager 2 Case Study Help has actually become a specialized details company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, The Business Development Manager 2 Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in general and CMP in particular. These elements include;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement 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 important experience, technical resources and the capabilities of the company could be used 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 Business Development Manager 2 Case Study Analysis has certain strengths that can be used to reduce the risks, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Business Development Manager 2 Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the business to consider a number of advancement chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which might increase constraints for the company in executing its advancement program. The weaknesses of The Business Development Manager 2 Case Study Help are given 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 development. It should propose particular growth strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is declining because 2008, affecting The Business Development Manager 2 Case Study Solution as well, however the growth could be restored by availing specific opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented particular dangers to The Business Development Manager 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of The Business Development Manager 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be calculated. Nevertheless, the total financial performance of the company could be evaluated by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The Business Development Manager 2 Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of consumers at a possible price.
In addition to it, the 2nd chart which shows the yearly growth in the The Business Development Manager 2 Case Study Solution overall properties, reveals that the business is rather efficient in including worth to its properties through its incomes. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the business using the provided data could be the analysis regarding the distribution of overall incomes of the business. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the overall political forces impacting The Business Development Manager 2 Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting The Business Development Manager 2 Case Study Solution consists of the concerns of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competitors 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 replacement products for the released documents is the files provided in the digital libraries on certain sites. The changing customer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Business Development Manager 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of The Business Development Manager 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as The Business Development Manager 2 Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the business need an immediate solution to prevent the declining market development. Introduction of digital publishing might prove to be an instant service with low quantity of risk for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the information related to the consumer need, the potential markets, the federal government regulations and the information connected to the competitors presented in the market. After that, the company must choose one potential sector for its initial offering. It ought to collect research that how it might separate its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. The business must go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining because 2008, revealing a threat to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entrance in the new markets.
