Haynsworths Should I Stay Or Should I Go Case Study Solution and Analysis
Intro
Haynsworths Should I Stay Or Should I Go Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and Haynsworths Should I Stay Or Should I Go Case Study Help in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
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 situation? 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 business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Haynsworths Should I Stay Or Should I Go Case Study Solution has certain strengths that can be utilized to lower the risks, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Haynsworths Should I Stay Or Should I Go Case Study Solution in the publishing industry i.e. 60 years enables the business to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its threat and provide high value to its clients.
• Strong monetary position enables the business to consider several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which might increase restraints for the company in executing its development program. The weak points of Haynsworths Should I Stay Or Should I Go Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is declining considering that 2008, affecting Haynsworths Should I Stay Or Should I Go Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually postured specific threats to Haynsworths Should I Stay Or Should I Go Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Haynsworths Should I Stay Or Should I Go Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market in addition to presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly total incomes of Haynsworths Should I Stay Or Should I Go Case Study Solution during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in attracting a large number of customers at a potential price.
Together with it, the 2nd chart which reveals the yearly development in the Haynsworths Should I Stay Or Should I Go Case Study Help overall properties, shows that the business is rather effective in adding value to its possessions through its incomes. The development in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of total earnings of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out helpful products etc. China has the highest population on the planet with a high population growth, revealing the increasing variety of customers of the Haynsworths Should I Stay Or Should I Go Case Study Solution. Nevertheless, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and innovation together with the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Haynsworths Should I Stay Or Should I Go Case Study Solution consists of the issues of environmental 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 policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on specific sites. The changing consumer choices towards digital knowing increase the threat of replacement for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Haynsworths Should I Stay Or Should I Go Case Study Help include the providers of the paper for releasing files. 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.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Haynsworths Should I Stay Or Should I Go Case Study Solution include;.
• 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as Haynsworths Should I Stay Or Should I Go Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining market development. Intro of digital publishing might prove to be an instant option with low quantity of risk for the business. The company could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data related to the consumer need, the prospective markets, the government regulations and the information related to the competitors presented in the market. If the preliminary offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a hazard to the company's long term presence, however the situation can be managed by considering an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the risk of failure for entrance in the new markets.
