High Mountain Technologies 4 Case Study Solution and Analysis
High Mountain Technologies 4 Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized info service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, High Mountain Technologies 4 Case Study Help has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in basic and CMP in particular. These elements include;
• Entrance 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 improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
High Mountain Technologies 4 Case Study Analysis has specific strengths that can be made use of to lower the dangers, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of High Mountain Technologies 4 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong financial position allows the business to consider a number of advancement chances with no worry of raising fund externally.
In addition to the strengths, the business has particular weak points which might increase restrictions for the company in implementing its development program. The weaknesses of High Mountain Technologies 4 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Although, the development of the publishing market is decreasing considering that 2008, affecting High Mountain Technologies 4 Case Study Help also, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured specific dangers to High Mountain Technologies 4 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of High Mountain Technologies 4 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the industry along with existence of high competitors increases the hazard of losing the consumer base.
Due to absence of data, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the annual overall revenues of High Mountain Technologies 4 Case Study Analysis throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is rather effective in attracting a big number of consumers at a possible rate.
Along with it, the second chart which reveals the annual growth in the High Mountain Technologies 4 Case Study Analysis total assets, shows that the company is quite effective in including value to its possessions through its earnings. The development in properties shows that the overall value of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the offered data might be the analysis regarding the circulation of total earnings of the business. Major 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 business could move towards other service segments with a possible growth to attain its future development goal.
PESTEL analysis could be carried out to find out the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. For that reason, it might be said that the general political forces affecting High Mountain Technologies 4 Case Study Help business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken soon.
Environmental forces affecting High Mountain Technologies 4 Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal policies 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 Ordinance 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to bring in brand-new entrants to the publishing industry. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the High Mountain Technologies 4 Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 requires high quality files at competitive prices.
CMP operates in a highly competitive market with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of High Mountain Technologies 4 Case Study Solution include;.
• Chemical Industry 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as High Mountain Technologies 4 Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
As the choices are moving towards digital publishing and the business need an instant service to avoid the declining industry growth. The company might also consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first collects the data connected to the customer need, the potential markets, the government policies and the data connected to the rivals presented in the market. After that, the business should choose one potential sector for its initial offering. It must collect research study that how it might distinguish its digital publishing from the existing competitors' products. The steps above the business must go for the preliminary offering. If the initial offering proves a success, the business should opt for the other markets. In this way the business would have the ability to implement its digital publishing program.
Although, the development of the publishing market is declining given that 2008, showing a hazard to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.