Harvard Management Company 2010 Case Study Solution and Analysis
Intro
Harvard Management Company 2010 Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring specific difficulties to the publishing market in general and Harvard Management Company 2010 Case Study Help in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The change 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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Harvard Management Company 2010 Case Study Analysis has certain strengths that can be made use of to decrease the risks, overcome 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 Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its consumers.
• Strong monetary position allows the company to consider a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Harvard Management Company 2010 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, impacting Harvard Management Company 2010 Case Study Analysis as well, but the growth could be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has actually posed particular hazards to Harvard Management Company 2010 Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing 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 competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be calculated. Nevertheless, the general monetary performance of the company might be analyzed by utilizing the graphs given up the case Appendices. It might be analyzed from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Harvard Management Company 2010 Case Study Help is growing and the business is quite efficient in drawing in a large number of customers at a possible price.
In addition to it, the second chart which reveals the annual growth in the Harvard Management Company 2010 Case Study Solution total assets, shows that the business is rather efficient in adding value to its assets through its earnings. The growth in assets shows that the total worth of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of total earnings of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service segments with a possible growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the business and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Harvard Management Company 2010 Case Study Analysis organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the Harvard Management Company 2010 Case Study Analysis in particular includesthe prices of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies associated with the import of books impact the general service at CPM. However, China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing variety of consumers of the Harvard Management Company 2010 Case Study Help. However, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Harvard Management Company 2010 Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the virtual libraries on certain sites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Harvard Management Company 2010 Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason 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 presence 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 runs in an extremely competitive industry with the existence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Harvard Management Company 2010 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 quickly in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor 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 regards to organisation scale. It is also among the popular players in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 company sections to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. Intro of digital publishing could prove to be an immediate option with low quantity of risk for the company. The business might also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company needs to initially gathers the data associated with the consumer need, the potential markets, the government guidelines and the information associated with the rivals presented in the market. After that, the business should choose one potential sector for its initial offering. It ought to collect research study that how it might distinguish its digital publishing from the existing rivals' products. The actions above the business need to go for the initial offering. The business must go for the other markets if the preliminary offering shows a success. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a risk to the company's long term existence, but the scenario can be controlled by considering an advancement plan 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 risk of failure for entryway in the new markets.
