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Hcl Technologies Case Study Solution and Analysis


Introduction

Hcl Technologies Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized info supplier and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Critical Concerns

Although, Hcl Technologies Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and CMP in particular. These elements include;

• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Hcl Technologies Case Study Analysis has particular strengths that can be made use of to minimize the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;

• The long term experience of Hcl Technologies Case Study Analysis in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position allows the business to think about numerous advancement opportunities without any worry of raising fund externally.

Weak points

In addition to the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its advancement program. The weaknesses of Hcl Technologies Case Study Solution are provided as follows;

• Despite of being a science and innovation publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain growth strategies to prevent its reliance over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

The development of the publishing industry is decreasing considering that 2008, impacting Hcl Technologies Case Study Help as well, but the development could be revived by availing particular opportunities presented in the market. The market chances for CMP consist of;

• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.

Dangers

The changing macro trends in the market and increasing competition in the publishing market has posed certain hazards to Hcl Technologies Case Study Help including;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries could lead to declining market share of Hcl Technologies Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competitors increases the hazard of losing the client base.

Financial Analysis.
Swot Analysis
Due to absence of information, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total earnings of Hcl Technologies Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the products of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible rate.

Along with it, the 2nd chart which reveals the yearly growth in the Hcl Technologies Case Study Analysis total properties, shows that the company is quite effective in including worth to its properties through its earnings. The development in assets shows that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).

Another financial analysis of the business utilizing the provided information might be the analysis relating to the distribution of overall incomes of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business segments with a prospective development to achieve its future development goal.

PESTEL Analysis

PESTEL analysis could be carried out to learn the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the total political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.

Cost-effective.

Financial forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect 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 must focus on digital publishing to fulfill the changing customer choices.

Technological.

Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and technology together with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Hcl Technologies Case Study Analysis consists of the concerns of ecological communities 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 ought to not be hazardous for the environment.

Legal.

Legal guidelines 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 approved first by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.

Industry Analysis (Porter's 5 Forces Model).

Porter's Five Forces Model might be utilized to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.

Danger of New Entrants.

Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.

Threat of Replacement.

Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on particular websites. The altering consumer preferences towards digital learning increase the hazard of replacement for the market.

Competitive Competition.

Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.

Bargaining Power of Provider.

The major suppliers of the Hcl Technologies Case Study Solution include the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.

Rivals Analysis.

CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Hcl Technologies Case Study Solution consist of;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a threat 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 CMP easily in the present market situation.

Posts and telecommunication Press (PTP).

Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of possible 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 introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.

Suggestions

With the deep analysis of the external and internal environment of the business along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the company need an instant service to prevent the decreasing market development. For that reason, introduction of digital publishing could prove to be an immediate option with low amount of risk for the company. However, the business might also think about the growth program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer demand, the prospective markets, the government regulations and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.

Conclusion

The development of the publishing industry is declining considering that 2008, showing a threat to the company's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.

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