Harris Seafoods Inc 2 Case Study Solution and Analysis
Intro
Harris Seafoods Inc 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in general and Harris Seafoods Inc 2 Case Study Solution in specific. These factors include;
• Entrance of the new publishing firms 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 a number of 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 business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Harris Seafoods Inc 2 Case Study Solution has certain strengths that can be made use of to decrease the hazards, conquer the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Harris Seafoods Inc 2 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 previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong financial position permits the company to think about numerous development opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Harris Seafoods Inc 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific growth strategies to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is declining given that 2008, affecting Harris Seafoods Inc 2 Case Study Solution as well, but the growth might be restored by availing certain chances provided in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain threats to Harris Seafoods Inc 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Harris Seafoods Inc 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be calculated. The general financial performance of the company might be analyzed by utilizing the graphs offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Harris Seafoods Inc 2 Case Study Solution is growing and the company is quite effective in bring in a large number of clients at a possible rate.
In addition to it, the 2nd chart which shows the annual development in the Harris Seafoods Inc 2 Case Study Solution overall properties, shows that the business is quite efficient in including value to its properties through its profits. The growth in possessions shows that the overall worth of the firm is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis relating to the distribution 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 company might move towards other company segments with a prospective growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting Harris Seafoods Inc 2 Case Study Help service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards checking out useful products etc. China has the greatest population in the world with a high population growth, revealing the increasing number of customers of the Harris Seafoods Inc 2 Case Study Solution. The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces affecting Harris Seafoods Inc 2 Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed 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. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Danger of Substitution.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the virtual libraries on particular websites. The altering consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Harris Seafoods Inc 2 Case Study Help consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Harris Seafoods Inc 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Harris Seafoods Inc 2 Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry growth. For that reason, intro of digital publishing could prove to be an immediate service with low amount of risk for the business. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business should first collects the data associated with the consumer need, the potential markets, the federal government policies and the information connected to the competitors provided in the market. After that, the company must choose one possible section for its preliminary offering. It ought to gather research that how it might distinguish its digital publishing from the existing rivals' products. After all the actions above the business need to choose the initial offering. If the preliminary offering shows a success, the business needs to choose the other markets. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, revealing a hazard to the business's long term presence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
