Handelsbanken 2 Case Study Solution and Analysis
Introduction
Handelsbanken 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; collecting information, processing information and communication services. Significant service sections of the business include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. Handelsbanken 2 Case Study Solution has actually become a specialized info provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and Handelsbanken 2 Case Study Solution in particular. These elements include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be made use of 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
Handelsbanken 2 Case Study Solution has certain strengths that can be made use of to decrease the risks, overcome the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Handelsbanken 2 Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the company to consider a number of advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in executing its advancement program. The weaknesses of Handelsbanken 2 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, 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 particular growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Handelsbanken 2 Case Study Analysis too, however the growth could be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has presented particular dangers to Handelsbanken 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Handelsbanken 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. The total financial efficiency of the company might be evaluated by using the graphs offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Handelsbanken 2 Case Study Analysis is growing and the company is quite efficient in attracting a large number of customers at a possible rate.
Along with it, the 2nd graph which reveals the yearly growth in the Handelsbanken 2 Case Study Solution overall assets, reveals that the business is quite effective in including value to its properties through its earnings. The development in assets reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the distribution of total incomes of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Handelsbanken 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations 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 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to analyze the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents provided in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Handelsbanken 2 Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Handelsbanken 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP releases comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a significant focus on educational publications. CIP functions 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 could wean the marketplace share of Handelsbanken 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Handelsbanken 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose demand of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an immediate service to avoid the declining market growth. The business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company must initially collects the information related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the competitors presented in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the business's long term existence, but the situation can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
