High Mountain Technologies 5 Case Study Solution and Analysis
High Mountain Technologies 5 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering info, processing info and interaction services. Significant organisation sectors of the company include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. High Mountain Technologies 5 Case Study Analysis has actually become a specialized details supplier and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and High Mountain Technologies 5 Case Study Help in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 situation? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
High Mountain Technologies 5 Case Study Solution has particular strengths that can be made use of to decrease the hazards, conquer the weak point and get the chances. Strengths of CMP are given as follows;
• The long term experience of High Mountain Technologies 5 Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong monetary position permits the business to consider numerous development chances with no fear of raising fund externally.
In addition to the strengths, the company has specific weak points which might increase restraints for the business in implementing its advancement program. The weaknesses of High Mountain Technologies 5 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional 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 strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining given that 2008, affecting High Mountain Technologies 5 Case Study Analysis as well, but the growth might be restored by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge funds.
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented certain dangers to High Mountain Technologies 5 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of High Mountain Technologies 5 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific strategies like aggressive promo, quality products, and so on
• Entryway of new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP might not be determined. Nevertheless, the general financial performance of the business could be analyzed by using the charts given in the case Appendices. It could be examined from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of High Mountain Technologies 5 Case Study Help is growing and the business is quite effective in attracting a large number of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly development in the High Mountain Technologies 5 Case Study Analysis overall assets, shows that the company is rather efficient in including worth to its assets through its incomes. The development in assets shows that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company using the given information might be the analysis regarding the distribution of total revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other service sections with a possible development to attain its future development objective.
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it could be said that the total political forces affecting High Mountain Technologies 5 Case Study Help company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies etc. Improvement of science and technology along with the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental forces impacting High Mountain Technologies 5 Case Study Help includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be used to evaluate the beauty of the publishing market China. A quick analysis of the Porter's Five Forces is offered 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 bring in new entrants to the publishing market. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the danger of alternative for the market.
Competitive rivalry 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. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the High Mountain Technologies 5 Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive market with the existence of large number of rivals. 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 5 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the very same duration, CIP releases comparable type of books. For a big time period, CIP held the largest market share, and still ranks third and 2nd in various market sectors, with a major focus on educational publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of High Mountain Technologies 5 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as High Mountain Technologies 5 Case Study Solution and CIP. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
• Usage of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the preferences are moving towards digital publishing and the business need an immediate service to avoid the declining industry development. Introduction of digital publishing could show to be an instant solution with low quantity of risk for the company. However, the company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the data associated with the customer demand, the potential markets, the government policies and the data related to the competitors presented in the market. After that, the company must choose one possible sector for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' items. After all the steps above the company ought to go for the initial offering. The company ought to go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Although, the growth of the publishing industry is declining given that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.