Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution and Analysis
Introduction
Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Help in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The change 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 situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Analysis has specific strengths that can be utilized to lower the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position permits the business to think about a number of advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its development program. The weak points of Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Help as well, but the growth might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has postured certain hazards to Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution due to the customer shift towards virtual libraries.
• The presence of large number 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 consumer base by using specific techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competitors increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP could not be computed. The total financial efficiency of the company might be evaluated by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual total incomes of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Help is growing and the business is quite efficient in attracting a large number of customers at a prospective price.
Along with it, the second chart which shows the yearly development in the Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution total possessions, shows that the business is quite effective in including value to its possessions through its earnings. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis regarding the distribution of total profits of the business. Huge part of the profits 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 business segments with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out helpful products etc. China has the greatest population on the planet with a high population growth, revealing the increasing number of consumers of the Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Help includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released files is the documents provided in the virtual libraries on certain sites. The changing consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Rivalry.
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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser 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 needs high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Hershey Foods Corporation Bitter Times In A Sweet Place 2 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration 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 market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present 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 concentrate on the digital publishing.
• Shift of focus from the core service segments 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 internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry development. Introduction of digital publishing might prove to be an immediate option with low quantity of danger for the company. However, the business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information connected to the customer need, the possible markets, the federal government policies and the information connected to the competitors presented in the market. After that, the business must choose one prospective section for its preliminary offering. It ought to gather research study that how it might differentiate its digital publishing from the existing competitors' products. After all the actions above the company must choose the initial offering. The business needs to go for the other markets if the initial offering proves a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a threat to the business's long term presence, but the situation can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
