Hcl Technologies Case Study Solution and Analysis
Intro
Hcl Technologies Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Hcl Technologies Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 business could be used to pursue the future development 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 threats, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Hcl Technologies Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the company to think about a number of development opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the company has certain weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Hcl Technologies Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, impacting Hcl Technologies Case Study Analysis as well, but the growth could be restored by availing certain opportunities presented in the market. The market opportunities for CMP include;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has posed particular risks to Hcl Technologies Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause decreasing market share of Hcl Technologies Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the yearly total revenues of Hcl Technologies Case Study Help during the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is rather effective in bring in a big number of consumers at a possible price.
Along with it, the second chart which shows the yearly development in the Hcl Technologies Case Study Analysis overall possessions, reveals that the company is rather effective in adding worth to its possessions through its incomes. The growth in properties reveals that the total value of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the business using the given data could be the analysis relating to the distribution of total incomes of the business. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company sectors with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Hcl Technologies Case Study Help consists of the issues 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 utilized while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Hcl Technologies 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 overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Hcl Technologies Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Hcl Technologies Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant service to avoid the decreasing market growth. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to first gathers the information associated with the consumer need, the prospective markets, the government guidelines and the information associated with the competitors presented in the market. After that, the business must choose one potential section for its preliminary offering. It ought to gather research study that how it could separate its digital publishing from the existing competitors' products. After all the actions above the company need to opt for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, revealing a hazard to the business's long term existence, however the circumstance can be managed by thinking about an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
