Harmon Foods Case Study Solution and Analysis
Harmon Foods Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details company and a big extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and Harmon Foods Case Study Solution in particular. These factors include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation 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 made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Harmon Foods Case Study Solution has particular strengths that can be utilized to reduce the dangers, overcome the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Harmon Foods Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong monetary position allows the company to think about several advancement opportunities without any worry of raising fund externally.
Together with the strengths, the company has certain weak points which might increase restrictions for the company in executing its development program. The weak points of Harmon Foods Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is decreasing considering that 2008, impacting Harmon Foods Case Study Help as well, however the development could be restored by availing specific chances presented in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might 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.
The changing macro patterns in the market and increasing competition in the publishing market has actually positioned particular risks to Harmon Foods Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Harmon Foods Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the market together with presence of high competitors increases the danger of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be computed. It could be examined from the Appendix III that the annual overall earnings of Harmon Foods Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather efficient in attracting a large number of customers at a potential cost.
Along with it, the second graph which reveals the yearly development in the Harmon Foods Case Study Analysis overall properties, reveals that the business is quite efficient in including worth to its assets through its revenues. The growth in assets shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information might be the analysis regarding the circulation of overall profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a potential growth to achieve its future development goal.
PESTEL analysis might be carried out to find out the different external forces impacting the performance of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces impacting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products etc. China has the highest population on the planet with a high population growth, showing the increasing number of consumers of the Harmon Foods Case Study Analysis. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Harmon Foods Case Study Analysis includes the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents provided in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the threat of replacement for the industry.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Harmon Foods Case Study Help include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 market saturation, the purchasers requires high quality documents at competitive costs.
CMP runs in a highly competitive market 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. Major competitors of Harmon Foods 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 might 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 easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the popular players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future development. As the choices are shifting towards digital publishing and the business need an immediate service to avoid the decreasing market growth. Introduction of digital publishing could prove to be an instant option with low quantity of risk for the business. Nevertheless, the business could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially gathers the information connected to the customer demand, the prospective markets, the government regulations and the information connected to the rivals presented in the market. After that, the business must choose one potential sector for its initial offering. It ought to collect research study that how it could differentiate its digital publishing from the existing rivals' products. After all the actions above the business ought to opt for the initial offering. If the initial offering proves a success, the business needs to opt for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing market is decreasing given that 2008, showing a danger to the business's long term existence, 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 advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.