Hang Lung Properties And The Chengdu Decision B Case Study Solution and Analysis
Intro
Hang Lung Properties And The Chengdu Decision B Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details service provider and a big detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Hang Lung Properties And The Chengdu Decision B Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 abilities of the business could be utilized to pursue the future development 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 B Case Study Analysis has specific strengths that can be used to decrease the risks, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Hang Lung Properties And The Chengdu Decision B Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
Along with the strengths, the company has certain weaknesses which could increase constraints for the business in implementing its development program. The weak points of Hang Lung Properties And The Chengdu Decision B Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Hang Lung Properties And The Chengdu Decision B Case Study Analysis too, but the growth could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has positioned certain dangers to Hang Lung Properties And The Chengdu Decision B Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Hang Lung Properties And The Chengdu Decision B Case Study Solution due to the customer 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 acquire a strong customer base by using particular methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competition increases the risk of losing the customer base.
Monetary Analysis.
The business has a quite competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be computed. Nevertheless, the total financial performance of the business could be analyzed by utilizing the charts given in the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP throughout the duration 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 B Case Study Solution is growing and the business is rather effective in drawing in a large number of clients at a possible rate.
Along with it, the 2nd chart which reveals the annual growth in the Hang Lung Properties And The Chengdu Decision B Case Study Help total possessions, reveals that the business is rather efficient in adding value to its possessions through its earnings. The growth in properties shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of overall revenues of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces impacting Hang Lung Properties And The Chengdu Decision B Case Study Solution service 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 general and the CMP in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Hang Lung Properties And The Chengdu Decision B Case Study Analysis. Nevertheless, the consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might decrease 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 B Case Study Solution includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the published documents is the files presented in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry 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 competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Hang Lung Properties And The Chengdu Decision B Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total 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 presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive market with the presence 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. Significant rivals of Hang Lung Properties And The Chengdu Decision B Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Hang Lung Properties And The Chengdu Decision B Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service 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 business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining industry development. Therefore, intro of digital publishing could show to be an immediate service with low quantity of threat for the company. The business could also think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the customer need, the prospective markets, the federal government regulations and the data associated with the competitors provided in the market. After that, the business should choose one potential segment for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing rivals' items. The steps above the company ought to go for the initial offering. If the preliminary offering shows a success, the company needs to opt for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing given that 2008, showing a risk to the company's long term presence, but the scenario can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
