High Mountain Technologies 5 Case Study Solution and Analysis
Intro
High Mountain Technologies 5 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing information and communication services. Significant business segments of the business include; books, regulars, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. High Mountain Technologies 5 Case Study Analysis has actually become a specialized info provider and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, High Mountain Technologies 5 Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These aspects include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company 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 5 Case Study Help has particular strengths that can be made use of to reduce the hazards, overcome the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of High Mountain Technologies 5 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong financial position allows the business to consider numerous advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restrictions for the business in implementing its development program. The weaknesses of High Mountain Technologies 5 Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company 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 needs to propose specific growth strategies to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, affecting High Mountain Technologies 5 Case Study Help as well, but the development might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has postured particular threats to High Mountain Technologies 5 Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of High Mountain Technologies 5 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using particular methods like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the market in addition to presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The general financial performance of the company might be analyzed by using the charts offered in the case Appendices. It might be examined from the Appendix III that the yearly overall earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of High Mountain Technologies 5 Case Study Help is growing and the company is quite efficient in drawing in a a great deal of customers at a prospective rate.
In addition to it, the 2nd chart which shows the annual development in the High Mountain Technologies 5 Case Study Help total properties, shows that the company is rather effective in including value to its assets through its revenues. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business using the given data could be the analysis concerning the circulation of overall revenues of the company. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to find out the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it could be stated that the general political forces affecting High Mountain Technologies 5 Case Study Help business are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the High Mountain Technologies 5 Case Study Analysis in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the general business at CPM. China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out useful products and so on. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the High Mountain Technologies 5 Case Study Analysis. Nevertheless, the consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting High Mountain Technologies 5 Case Study Solution consists of the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. The presence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The alternative products for the published files is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the High Mountain Technologies 5 Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of High Mountain Technologies 5 Case Study Help 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 very same period, CIP publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a major focus on educational publications. CIP acts 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 might wean the market share of High Mountain Technologies 5 Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as High Mountain Technologies 5 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-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 along with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the business require an instant service to avoid the declining market development. Introduction of digital publishing could prove to be an instant option with low amount of risk for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must initially gathers the information related to the consumer need, the prospective markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the company needs 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 market is declining since 2008, revealing a threat to the company's long term existence, but the circumstance can be managed by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
