Harvard Management Company 2010 Case Study Solution and Analysis
Harvard Management Company 2010 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering info, processing details and communication services. Major company segments of the business include; books, periodicals, consultancy and distribution. The business has a huge product portfolio and its significant products consist of books, regulars, online media, exhibitions, research study reports etc. Harvard Management Company 2010 Case Study Analysis has actually ended up being a specialized information service provider and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing industry in general and Harvard Management Company 2010 Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining 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 numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Harvard Management Company 2010 Case Study Analysis has certain strengths that can be used to lower the dangers, conquer the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Harvard Management Company 2010 Case Study Solution in the publishing industry i.e. 60 years allows 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 provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong financial position permits the company to think about a number of development chances without any fear of raising fund externally.
Together with the strengths, the business has certain weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Harvard Management Company 2010 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business 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 growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Although, the development of the publishing industry is declining considering that 2008, impacting Harvard Management Company 2010 Case Study Solution as well, but the development might be revived by availing specific chances provided in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed specific hazards to Harvard Management Company 2010 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Harvard Management Company 2010 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing particular methods like aggressive promo, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.
The company has a quite competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be determined. However, the general financial efficiency of the company could be evaluated by utilizing the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Harvard Management Company 2010 Case Study Solution is growing and the business is quite efficient in bring in a large number of clients at a possible price.
In addition to it, the 2nd chart which reveals the yearly growth in the Harvard Management Company 2010 Case Study Solution overall possessions, reveals that the business is quite effective in adding value to its properties through its revenues. The growth in assets reveals that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis relating to the distribution of total incomes of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sections with a potential development to achieve its future advancement goal.
PESTEL analysis might be carried out to learn the various external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Harvard Management Company 2010 Case Study Help company are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Harvard Management Company 2010 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to examine the appearance of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on particular sites. The altering customer choices towards digital knowing increase the risk of alternative for the market.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Harvard Management Company 2010 Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the presence 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 an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Harvard Management Company 2010 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the exact same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks third and second in various market sectors, with a major concentrate on academic publications. 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 Harvard Management Company 2010 Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of organisation scale. It is likewise among the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the decreasing market development. The business could also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially gathers the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. After that, the business should choose one potential segment for its initial offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company ought to go for the initial offering. The company needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to implement its digital publishing program.
The growth of the publishing market is declining considering that 2008, showing a danger to the business's long term existence, however the scenario can be controlled by thinking about an advancement plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.