Harrison Company Case Study Solution and Analysis
Harrison Company Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Harrison Company Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change 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 important experience, technical resources and the capabilities 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?
Harrison Company Case Study Help has certain strengths that can be utilized to minimize the risks, conquer the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Harrison Company Case Study Solution in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position enables the business to think about several advancement chances without any worry of raising fund externally.
In addition to the strengths, the company has particular weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Harrison Company Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term growth.
Although, the development of the publishing industry is decreasing since 2008, impacting Harrison Company Case Study Help also, however the growth could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has positioned certain threats to Harrison Company Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Harrison Company Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality items, and so on
• Entrance of new publishing firms in the market together with existence of high competitors increases the hazard of losing the customer base.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The total financial performance of the business might be examined by utilizing the charts given in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Harrison Company Case Study Analysis is growing and the company is rather effective in drawing in a large number of clients at a potential rate.
Along with it, the 2nd chart which shows the annual development in the Harrison Company Case Study Analysis total possessions, reveals that the company is rather efficient in including value to its assets through its revenues. The development in properties shows that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided information might be the analysis concerning the distribution of total earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future advancement goal.
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Harrison Company Case Study Solution service are high. The federal 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 specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading useful materials and so on. China has the highest population on the planet with a high population development, showing the increasing variety of customers of the Harrison Company Case Study Solution. However, the consumer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology together with the rise of digital publishing could decrease the demand for the CMP products, if certain actions would not be taken soon.
Ecological forces impacting Harrison Company Case Study Solution includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design could be used to examine the beauty of the publishing industry China. A short 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 possible growth in the market tends to attract brand-new entrants to the publishing market. However, the presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on certain sites. The changing customer choices towards digital learning increase the danger of alternative for the market.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Harrison Company Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP operates in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Harrison Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same duration, CIP publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks second and third in different market sectors, with a significant concentrate on educational publications. CIP serves as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Harrison Company Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product 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 company sections to the new one can lead the business to lose need of its products in the market.
As the preferences are moving towards digital publishing and the company require an immediate solution to prevent the declining industry development. The business might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business should first collects the information connected to the consumer demand, the prospective markets, the federal government regulations and the data connected to the competitors provided in the market. After that, the business needs to choose one prospective sector for its preliminary offering. It needs to gather research study that how it might separate its digital publishing from the existing competitors' items. The steps above the company ought to go for the initial offering. If the initial offering proves a success, the business must choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the development of the publishing industry is decreasing since 2008, revealing a threat to the company's long term existence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.