Harrison Company Case Study Solution and Analysis
Introduction
Harrison Company Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering info, processing info and interaction services. Major business sectors of the business include; books, periodicals, consultancy and distribution. The company has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Harrison Company Case Study Analysis has actually become a specialized info service provider and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, Harrison Company Case Study Solution has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular difficulties to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Harrison Company Case Study Help has specific strengths that can be made use of to decrease the risks, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Harrison Company Case Study Solution in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong financial position allows the company to consider numerous development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase constraints for the company in executing its development program. The weak points of Harrison Company Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The development of the publishing industry is declining considering that 2008, impacting Harrison Company Case Study Solution as well, but the development could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing market has positioned specific dangers to Harrison Company Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Harrison Company Case Study Help 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 rivals can gain a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The general financial efficiency of the business could be examined by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Harrison Company Case Study Solution is growing and the business is quite effective in drawing in a large number of customers at a potential price.
In addition to it, the 2nd graph which reveals the annual growth in the Harrison Company Case Study Solution overall possessions, shows that the company is quite effective in adding worth to its possessions through its revenues. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis concerning the distribution of overall profits of the business. Huge part of the earnings 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 development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the numerous external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Harrison Company Case Study Help in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Harrison Company Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the released documents is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition 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. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Harrison Company Case Study Solution consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Harrison Company Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an instant service to prevent the decreasing industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must first gathers the information related to the consumer need, the possible markets, the government regulations and the information related to the competitors provided in the market. If the initial offering shows a success, the company should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term presence, however the situation can be controlled by considering an advancement strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
