High Tower Department Stores Imported Stuffed Animals Case Study Solution and Analysis
Introduction
High Tower Department Stores Imported Stuffed Animals Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing information and communication services. Major business sections of the company consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports and so on. High Tower Department Stores Imported Stuffed Animals Case Study Solution has actually become a specialized info supplier and a large comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Issues
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in general and High Tower Department Stores Imported Stuffed Animals Case Study Analysis in specific. These elements consist of;
• Entrance of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The transformation of the macro markets have raised several concerns 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 business could be used 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
High Tower Department Stores Imported Stuffed Animals Case Study Solution has certain strengths that can be used to reduce the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of High Tower Department Stores Imported Stuffed Animals Case Study Analysis in the publishing industry i.e. 60 years enables the business to offer high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high worth to its clients.
• Strong financial position allows the company to think about numerous development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which might increase constraints for the business in implementing its advancement program. The weaknesses of High Tower Department Stores Imported Stuffed Animals Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting High Tower Department Stores Imported Stuffed Animals Case Study Analysis as well, but the development could be restored by availing certain chances presented in the market. The market chances for CMP include;
• The business might likewise introduce 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 lower its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has posed particular risks to High Tower Department Stores Imported Stuffed Animals Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of High Tower Department Stores Imported Stuffed Animals Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry along with existence of high competition increases the hazard of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be computed. The overall monetary performance of the company could be evaluated by using the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of High Tower Department Stores Imported Stuffed Animals Case Study Solution is growing and the business is rather efficient in drawing in a large number of consumers at a prospective rate.
Along with it, the 2nd graph which shows the yearly growth in the High Tower Department Stores Imported Stuffed Animals Case Study Analysis total properties, reveals that the business is rather efficient in adding worth to its properties through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data could be the analysis concerning the circulation of overall profits of the business. Huge part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a prospective development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous 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 business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the demand 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 ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques etc. Improvement of science and innovation along with the rise of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting High Tower Department Stores Imported Stuffed Animals Case Study Analysis includes 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 disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the virtual libraries on certain sites. The changing customer preferences towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the High Tower Department Stores Imported Stuffed Animals Case Study Solution include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the total 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 needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of High Tower Department Stores Imported Stuffed Animals Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and third in different market sections, with a major focus on instructional publications. 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 marketplace share of High Tower Department Stores Imported Stuffed Animals Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as High Tower Department Stores Imported Stuffed Animals Case Study Help and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business need an instant service to prevent the declining industry growth. The business could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company ought to initially collects the information related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a risk to the business's long term existence, but the situation can be controlled by considering a development plan in the future. The business might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.
