The Business Development Manager Case Study Solution and Analysis
Intro
The Business Development Manager Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and The Business Development Manager Case Study Solution in particular. These elements include;
• Entrance of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Business Development Manager Case Study Help has particular strengths that can be used to reduce the risks, overcome the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Business Development Manager Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position enables the company to consider several development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which might increase constraints for the business in executing its development program. The weaknesses of The Business Development Manager Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business 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 ought to propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting The Business Development Manager Case Study Analysis as well, however the growth could be restored by availing specific chances provided in the market. The market opportunities for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed particular hazards to The Business Development Manager Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of The Business Development Manager Case Study Solution due to the customer shift towards digital 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 gain a strong customer base by utilizing certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be determined. The overall monetary performance of the business could be examined by using the graphs offered in the case Appendices. It might be evaluated from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the products of The Business Development Manager Case Study Solution is growing and the business is quite effective in attracting a large number of consumers at a prospective price.
Along with it, the second chart which reveals the annual development in the The Business Development Manager Case Study Analysis overall possessions, reveals that the company is rather efficient in including value to its possessions through its earnings. The growth in assets shows that the total value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis relating to the distribution of overall profits of the company. Huge part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a potential development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces impacting the performance of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it might be stated that the general political forces affecting The Business Development Manager Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful materials and so on. China has the highest population in the world with a high population growth, showing the increasing number of customers of the The Business Development Manager Case Study Solution. However, the customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should concentrate on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting The Business Development Manager Case Study Analysis consists of the concerns of ecological communities over the usage 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 needs to not be harmful 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 gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Threat of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the digital libraries on certain websites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the The Business Development Manager Case Study Help consist of the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
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 market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Business Development Manager Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is likewise one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business 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 company in addition to the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining market development. For that reason, introduction of digital publishing might show to be an immediate solution with low amount of danger for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the consumer need, the possible markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business must decide one potential section for its preliminary offering. It ought to gather research that how it could distinguish its digital publishing from the existing rivals' products. The actions above the business need to go for the preliminary offering. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
