High Mountain Technologies 4 Case Study Solution and Analysis
Introduction
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 ended up being a specialized info service provider and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in general and High Mountain Technologies 4 Case Study Analysis in specific. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous 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 used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
High Mountain Technologies 4 Case Study Analysis has particular strengths that can be used to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of High Mountain Technologies 4 Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the business to think about several advancement chances with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has certain weak points which might increase restrictions for the business in implementing its development program. The weaknesses of High Mountain Technologies 4 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining since 2008, affecting High Mountain Technologies 4 Case Study Solution as well, however the development might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing market has positioned specific dangers to High Mountain Technologies 4 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of High Mountain Technologies 4 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The overall monetary performance of the company might be evaluated by utilizing the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of High Mountain Technologies 4 Case Study Help is growing and the company is rather effective in drawing in a large number of consumers at a prospective price.
Along with it, the 2nd graph which reveals the yearly development in the High Mountain Technologies 4 Case Study Analysis total possessions, reveals that the company is quite effective in including worth to its assets through its incomes. The growth in assets shows that the total worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the business using the given information might be the analysis concerning the circulation of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the efficiency of the company and the current trends 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 might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. For that reason, it could be stated that the overall political forces impacting High Mountain Technologies 4 Case Study Solution company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need 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 fulfill the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting High Mountain Technologies 4 Case Study Analysis includes the concerns of environmental neighborhoods over the usage 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 regulations for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to evaluate the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the digital libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing market 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. Along with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the High Mountain Technologies 4 Case Study Solution consist of 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 Purchaser.
Negotiating 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 marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of High Mountain Technologies 4 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same duration, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in various market sectors, with a significant concentrate on academic publications. CIP functions as a threat 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 High Mountain Technologies 4 Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as High Mountain Technologies 4 Case Study Solution and CIP. It is also one of the prominent players in the publishing industry with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. Therefore, introduction of digital publishing might show to be an immediate option with low amount of risk for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to first gathers the information connected to the customer demand, the potential markets, the government guidelines and the data associated with the rivals provided in the market. After that, the business ought to choose one potential section for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' products. The actions above the company ought to go for the preliminary offering. If the initial offering shows a success, the company ought to opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a risk to the business's long term presence, however the circumstance can be managed by considering a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
