The Business Development Manager Case Study Solution and Analysis
The Business Development Manager Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and The Business Development Manager Case Study Help in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
The Business Development Manager Case Study Help has certain strengths that can be utilized to reduce the risks, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of The Business Development Manager Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong monetary position permits the company to consider a number of development opportunities with no fear of raising fund externally.
In addition to the strengths, the company has particular weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of The Business Development Manager Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular growth strategies to prevent its dependence over the Chinese markets to attain long term growth.
The growth of the publishing industry is declining because 2008, affecting The Business Development Manager Case Study Solution as well, but the development could be revived by availing particular opportunities presented in the market. The market chances for CMP include;
• The business might also introduce 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 utilizing its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing market has actually posed specific threats to The Business Development Manager Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of The Business Development Manager Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing firms in the industry along with presence of high competitors increases the threat of losing the customer base.
The company has a quite competitive financial performance. Due to lack of data, the monetary ratios of CMP might not be calculated. The general financial performance of the business might be analyzed by using the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of The Business Development Manager Case Study Analysis is growing and the business is rather effective in attracting a a great deal of consumers at a prospective cost.
Together with it, the 2nd graph which shows the yearly growth in the The Business Development Manager Case Study Analysis total properties, reveals that the business is quite effective in including worth to its properties through its revenues. The development in possessions reveals that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of total earnings of the company. Huge part of the incomes 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 sections with a possible growth to accomplish its future development objective.
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces affecting The Business Development Manager Case Study Analysis organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the The Business Development Manager Case Study Solution in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the general service at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological forces affecting the CMP include the technological development in the reading methods etc. Improvement of science and technology along with the rise of digital publishing might lower the need for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting The Business Development Manager Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the released files is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital learning increase the danger of replacement for the market.
Competitive competition 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 competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the The Business Development Manager Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
CMP operates in a highly competitive market with the existence of large number of competitors. However, the business 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 Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as The Business Development Manager Case Study Help and CIP. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer need, the possible markets, the government policies and the information related to the competitors provided in the market. If the initial offering shows a success, the business must go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing industry is declining given that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.