Hang Lung Properties And The Chengdu Decision A Case Study Solution and Analysis
Introduction
Hang Lung Properties And The Chengdu Decision A Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a variety of services including; collecting info, processing details and interaction services. Significant company sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant products consist of books, periodicals, online media, exhibits, research study reports etc. Hang Lung Properties And The Chengdu Decision A Case Study Analysis has actually become a specialized details service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain difficulties to the publishing market in basic and Hang Lung Properties And The Chengdu Decision A Case Study Analysis in particular. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• 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 circumstance? Do the long valuable 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?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hang Lung Properties And The Chengdu Decision A Case Study Solution has particular strengths that can be utilized to decrease the threats, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Hang Lung Properties And The Chengdu Decision A Case Study Solution in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and provide high worth to its clients.
• Strong financial position enables the company to think about numerous advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which could increase restrictions for the business in executing its development program. The weak points of Hang Lung Properties And The Chengdu Decision A Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Hang Lung Properties And The Chengdu Decision A Case Study Analysis too, but the growth might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has postured particular hazards to Hang Lung Properties And The Chengdu Decision A Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Hang Lung Properties And The Chengdu Decision A Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of competitors 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 using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry along with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the monetary ratios of CMP could not be computed. Nevertheless, the total financial performance of the business could be examined by using the charts given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Hang Lung Properties And The Chengdu Decision A Case Study Solution is growing and the business is quite efficient in attracting a large number of clients at a prospective price.
Along with it, the 2nd chart which reveals the yearly growth in the Hang Lung Properties And The Chengdu Decision A Case Study Help total assets, shows that the company is rather efficient in adding worth to its properties through its earnings. The development in properties shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided data could be the analysis relating to the distribution of overall earnings of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Hang Lung Properties And The Chengdu Decision A Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Hang Lung Properties And The Chengdu Decision A Case Study Solution in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the general service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards reading useful products and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of consumers of the Hang Lung Properties And The Chengdu Decision A Case Study Help. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and innovation along with the rise of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting Hang Lung Properties And The Chengdu Decision A Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The replacement items for the released documents is the files provided in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market 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. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Hang Lung Properties And The Chengdu Decision A Case Study Solution consist of the providers of the paper for publishing documents. 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 Buyer.
Bargaining 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 prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Hang Lung Properties And The Chengdu Decision A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as Hang Lung Properties And The Chengdu Decision A Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant option to prevent the decreasing market growth. For that reason, intro of digital publishing might show to be an immediate service with low quantity of threat for the business. The company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first collects the information related to the consumer demand, the potential markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining since 2008, revealing a hazard to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
