Hewlett Packard Company Ceo Succession In 2010 Case Study Solution and Analysis
Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
CMP has spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing market in basic and Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• 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 valuable experience, technical resources and the capabilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Hewlett Packard Company Ceo Succession In 2010 Case Study Solution has specific strengths that can be used to reduce the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position permits the business to think about several development chances without any worry of raising fund externally.
Together with the strengths, the business has certain weak points which could increase restraints for the company in implementing its development program. The weak points of Hewlett Packard Company Ceo Succession In 2010 Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose particular expansion strategies to avoid its dependence over the Chinese markets to attain long term development.
The growth of the publishing market is decreasing since 2008, affecting Hewlett Packard Company Ceo Succession In 2010 Case Study Help as well, but the growth might be revived by availing certain chances provided in the market. The market chances for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
The changing macro trends in the market and increasing competition in the publishing market has actually positioned specific dangers to Hewlett Packard Company Ceo Succession In 2010 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Hewlett Packard Company Ceo Succession In 2010 Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the risk of losing the client base.
Due to absence of information, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall earnings of Hewlett Packard Company Ceo Succession In 2010 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is quite effective in bring in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which shows the yearly growth in the Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis overall assets, reveals that the business is quite efficient in adding value to its possessions through its earnings. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis relating to the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a potential growth to accomplish its future development goal.
PESTEL analysis might be performed to learn the numerous external forces impacting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Hewlett Packard Company Ceo Succession In 2010 Case Study Help business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the Hewlett Packard Company Ceo Succession In 2010 Case Study Solution in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies related to the import of books impact the total service at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading informative products and so on. China has the highest population on the planet with a high population development, showing the increasing number of consumers of the Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and innovation together with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Hewlett Packard Company Ceo Succession In 2010 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the documents provided in the virtual libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP runs in a highly competitive market with the presence of large number of competitors. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same period, CIP releases similar type of books. For a large period, CIP held the largest market share, and still ranks third and second in various market sections, with a major concentrate on instructional publications. CIP serves as a hazard 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 marketplace share of Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of service scale. It is also among the popular players in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its items in the market.
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the company need an instant option to prevent the declining market development. Intro of digital publishing might prove to be an immediate solution with low amount of threat for the business. The company might likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business should first collects the data related to the customer demand, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is declining since 2008, showing a hazard to the business's long term presence, however the situation can be managed by thinking about an advancement strategy in the future. The business could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entrance in the new markets.