Bidding For Hertz Case Study Solution and Analysis
Introduction
Bidding For Hertz Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring specific challenges to the publishing market in basic and Bidding For Hertz Case Study Help in particular. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement of the macro markets have raised several questions 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Bidding For Hertz Case Study Help has certain strengths that can be utilized to minimize the threats, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Bidding For Hertz Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position enables the company to think about numerous development chances without any worry of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which might increase restrictions for the company in executing its advancement program. The weaknesses of Bidding For Hertz Case Study Help are provided as follows;
• Despite of being a science and innovation 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 growth. It must propose certain growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing market is declining since 2008, affecting Bidding For Hertz Case Study Analysis as well, but the development might be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has presented specific hazards to Bidding For Hertz Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Bidding For Hertz 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 threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using specific methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly total earnings of Bidding For Hertz Case Study Help during the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather effective in drawing in a big number of clients at a possible rate.
In addition to it, the 2nd graph which reveals the annual growth in the Bidding For Hertz Case Study Solution overall possessions, reveals that the business is rather efficient in adding value to its possessions through its incomes. The growth in properties shows that the total worth of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of overall profits of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a prospective growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be said that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and technology in addition to the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Bidding For Hertz 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 required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the released files is the documents presented in the virtual libraries on particular websites. The changing consumer choices towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Bidding For Hertz 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 provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Bidding For Hertz Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same period, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks third and 2nd in different market sections, with a significant focus on educational publications. CIP serves 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 Bidding For Hertz Case Study Help quickly in the current market circumstance.
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 company scale. It is also one of the prominent players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
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 brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an instant option to avoid the decreasing market growth. Therefore, intro of digital publishing could show to be an immediate option with low quantity of risk for the business. However, the business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first gathers the information related to the consumer demand, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term existence, but the circumstance can be managed by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
