Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Solution and Analysis
Introduction
Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Help has actually invested its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 scenario? Do the long important experience, technical resources and the abilities of the business could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis has particular strengths that can be used to lower the threats, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and supply high worth to its consumers.
• Strong monetary position allows the business to consider several advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has certain weaknesses which could increase restrictions for the business in executing its development program. The weak points of Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, 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 growth. It needs to propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis too, however the growth might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific risks to Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence 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 consumer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the industry along with presence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total earnings of Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite efficient in attracting a big number of consumers at a potential rate.
In addition to it, the second graph which reveals the yearly growth in the Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis total possessions, reveals that the business is rather effective in adding worth to its properties through its profits. The development in assets shows that the total value of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis regarding the circulation of overall revenues of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact 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 Promotion Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Help service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out helpful products and so on. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Help. However, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could lower the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Solution includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous 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 entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to draw in new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative products for the published documents is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital knowing increase the danger of replacement for the market.
Competitive Rivalry.
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 rivalry for CMP. In addition to it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Acquisition Of Hummer Mchallenges Faced By Chinese Companies Overseas Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competitors 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 need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate service to avoid the decreasing industry development. Intro of digital publishing might show to be an immediate service with low amount of danger for the company. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company needs to initially collects the information connected to the customer need, the potential markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business should decide one potential segment for its initial offering. It needs to collect research that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the business need to choose the initial offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
