BLUNTLY Media: A Private Company Valuation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

BLUNTLY Media: A Private Company Valuation Case Solution

Introduction

The Digital marketing industry is vast and diversified in its field. It comprises of different print and digital service providing companies. Bluntly Media is located in the United States and it is considered as a leading and foremost private marketing agency. It is categorized as one of the topagenciesin order to provide best media solutions. The company has unyielding portfolio of print and digital media sales and marketing.

The company has initially acquired Arrow Publishing to provide media sales services to its clients. In addition to its occurrence in Digital Marketing services¸ it acquired Digital media solution to fulfill client vast demands. It is expected that the company has global recognition in order to provide best solutions to its clients since 1990 therefore; the company has a pool of loyal customers and significant reputation in US.

The company has annual revenue of US$60 million and huge capabilities for a better future. Bluntly has successfully engraved itself as a middle-market company with respect to its operations. The exclusive synthesis of Bluntly is its people, playing a fundamental role for the company's accomplishments and outstanding growth, which shows that the organizational structure of the company is impressive which help the management of the company to retain skilled and experienced work force.

External Environment

As the year 2013-14 witnessed two major crises, firstly the partial US government shutdown after a long period of 17 years. Besides the US debt-ceiling crisis centered around, the crisis began in May 2013, when the US attained the debt ceiling of $16.7 trillion, providing a deadline of 5 months to make sure it reached its borrowing limit.

The US government shutdown spread rumors of increase in direct and indirect taxes and other legal charges that may have a direct impact on mergers and acquisitions and lending to small and medium businesses was also disturbed. However,the US debt selling also has its influences on direct marketing industry as it is having negative critics on the weight of US selling debts.

Looking at the past industry performance, it is clear that top 50 firms have half of the business of industry. Global crisis forced the industry to decrease its expenses, which caused digital marketing a basic component for all companies. Global crises also led to a huge downfall in GDP growth of and stock markets of the US.

On the other hand,direct marketing led to few damages in comparison with other sectors of Marketing. Direct marketing provides highly innovative ideas for its clients. Direct marketing has sales record of US$2 trillion and it is expecting a growth of 3.2% to 5.1% of total sales of the US in 2013;this shows a positive trend for Bluntly Media.

Paterson Publishing Company shows interest in buying Bluntly Media in a sell-side deal. Bluntly Media faces threats from rivals that can come in-between their potential deal. As the portfolio of Paterson Publishing Company consists of many other direct marketing firms with better technology and enhancement, there is a doubt that the potential deal might fall through. Slate stones can play a vital role and help Bluntly Media in order to generate more profit, which will untimely improve the financial health of the company.

Porter Five Forces Analysis

In order to analyze the external environment further, Porter’s five forces analysis is also performed which could help the management of the company to design future corporative and business goals. It is expected that the threat of new entrants is medium; the entry to the industry has many barriers such as intense competition, high cost structure of the business however, there is a significant potential of growth in industry, therefore many players with small structures could enter the market............

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