Hewlett Packard Company Ceo Succession In 2010 Case Study Solution and Analysis
Intro
Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing info and interaction services. Significant organisation segments of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major items consist of books, regulars, online media, exhibits, research reports and so on. Hewlett Packard Company Ceo Succession In 2010 Case Study Help has actually become a specialized information company and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and Hewlett Packard Company Ceo Succession In 2010 Case Study Solution in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be made use of 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
Hewlett Packard Company Ceo Succession In 2010 Case Study Solution has certain strengths that can be utilized to minimize the risks, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Hewlett Packard Company Ceo Succession In 2010 Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the company to consider numerous advancement chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Hewlett Packard Company Ceo Succession In 2010 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose certain growth plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Hewlett Packard Company Ceo Succession In 2010 Case Study Solution too, but the development might be restored by availing certain chances provided in the market. The marketplace chances for CMP include;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned particular threats to Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Hewlett Packard Company Ceo Succession In 2010 Case Study Help due to the consumer shift towards virtual 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 utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It might be examined from the Appendix III that the annual overall incomes of Hewlett Packard Company Ceo Succession In 2010 Case Study Help throughout the period 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 bring in a big number of customers at a possible rate.
In addition to it, the second chart which reveals the annual growth in the Hewlett Packard Company Ceo Succession In 2010 Case Study Solution overall possessions, shows that the business is quite efficient in adding worth to its possessions through its earnings. The growth in possessions shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of total incomes of the business. 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 business could move towards other business segments with a potential development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies associated with the import of books affect the total company at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading helpful products and so on. China has the highest population on the planet with a high population development, revealing the increasing number of customers of the Hewlett Packard Company Ceo Succession In 2010 Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Hewlett Packard Company Ceo Succession In 2010 Case Study Solution consists of the issues 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 utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to bring in new entrants to the publishing industry. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the risk of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Hewlett Packard Company Ceo Succession In 2010 Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Hewlett Packard Company Ceo Succession In 2010 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 might wean the market share of CMP quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact 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: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth 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 new one can lead the business to lose need of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry development. Introduction of digital publishing might show to be an immediate option with low quantity of risk for the company. However, the company might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a threat to the business's long term presence, but the situation can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the danger of failure for entrance in the new markets.
