Harmon Foods Case Study Solution and Analysis
Introduction
Harmon Foods Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the altering macro market trends and forces bring specific obstacles to the publishing market in general and Harmon Foods Case Study Help in specific. These elements consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company 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
Harmon Foods Case Study Help has specific strengths that can be utilized to minimize the hazards, conquer the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Harmon Foods Case Study Analysis in the publishing market i.e. 60 years enables the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its risk and supply high worth to its consumers.
• Strong monetary position enables the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Harmon Foods Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, 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 development. It ought to propose specific expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing given that 2008, affecting Harmon Foods Case Study Solution also, but the development could be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented certain dangers to Harmon Foods Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Harmon Foods Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the industry along with presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to lack of data, the financial ratios of CMP might not be computed. Nevertheless, the general monetary performance of the company might be evaluated by using the graphs given in the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Harmon Foods Case Study Analysis is growing and the company is quite effective in drawing in a a great deal of customers at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the Harmon Foods Case Study Help total properties, shows that the company is rather effective in including value to its possessions through its earnings. The development in properties shows that the total worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the circulation of overall incomes of the business. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company segments with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Harmon Foods Case Study Help service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand 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 Harmon Foods Case Study Solution. Nevertheless, the consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Harmon Foods Case Study Help consists of the issues of ecological communities 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 needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to analyze the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the files provided in the virtual libraries on particular sites. The changing consumer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Harmon Foods Case Study Analysis include the suppliers of the paper for publishing documents. 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.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Harmon Foods Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a significant concentrate on educational publications. 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 could wean the market share of Harmon Foods Case Study Solution quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same period as Harmon Foods Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
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 suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the decreasing industry development. Introduction of digital publishing might show to be an instant option with low amount of threat for the company. However, the company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must first gathers the information related to the consumer need, the potential markets, the federal government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a risk to the business's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entrance in the brand-new markets.
