Hayman Capital Management Case Study Solution and Analysis
Hayman Capital Management Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing details and communication services. Significant organisation sectors of the company include; books, regulars, consultancy and circulation. The business has a large item portfolio and its major products include books, periodicals, online media, exhibits, research reports etc. Hayman Capital Management Case Study Help has actually become a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Hayman Capital Management Case Study Help has invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and CMP in specific. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Hayman Capital Management Case Study Analysis has particular strengths that can be used to lower the threats, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Hayman Capital Management Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the company to think about several development chances without any fear of raising fund externally.
In addition to the strengths, the business has particular weaknesses which might increase constraints for the company in implementing its development program. The weak points of Hayman Capital Management Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is decreasing since 2008, affecting Hayman Capital Management Case Study Solution as well, however the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned particular risks to Hayman Capital Management Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Hayman Capital Management Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal 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 using certain techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competitors increases the danger of losing the consumer base.
The company has a quite competitive monetary efficiency. Due to absence of information, the monetary ratios of CMP could not be determined. Nevertheless, the overall financial efficiency of the company might be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Hayman Capital Management Case Study Analysis is growing and the business is quite effective in drawing in a a great deal of customers at a potential cost.
In addition to it, the 2nd graph which reveals the annual growth in the Hayman Capital Management Case Study Help overall properties, shows that the business is rather effective in including worth to its possessions through its earnings. The development in possessions reveals that the overall worth of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the offered data could be the analysis regarding the circulation of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to accomplish its future advancement goal.
PESTEL analysis might be carried out to find out the various external forces impacting the performance of the company and the recent patterns in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Hayman Capital Management Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing industry. Nevertheless, the existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the released files is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the danger of substitution for the market.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Hayman Capital Management Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 buyers needs high quality documents at competitive prices.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Hayman Capital Management Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sectors, with a significant concentrate on educational publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Hayman Capital Management Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Hayman Capital Management Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
As the preferences are shifting towards digital publishing and the business require an immediate option to prevent the declining industry development. The company might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business must first gathers the information associated with the customer need, the possible markets, the government guidelines and the information associated with the competitors provided in the market. After that, the business needs to choose one potential sector for its preliminary offering. It must gather research that how it might distinguish its digital publishing from the existing competitors' products. The actions above the business should go for the preliminary offering. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
The development of the publishing market is decreasing considering that 2008, revealing a threat to the business's long term existence, but the situation can be managed by considering an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.