High Tower Department Stores Imported Stuffed Animals Case Study Solution and Analysis
High Tower Department Stores Imported Stuffed Animals Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, High Tower Department Stores Imported Stuffed Animals Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised several 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 business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
High Tower Department Stores Imported Stuffed Animals Case Study Analysis has specific strengths that can be made use of to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of High Tower Department Stores Imported Stuffed Animals Case Study Solution in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to consider a number of development chances without any fear of raising fund externally.
Along with the strengths, the business has certain weaknesses which might increase constraints for the business in executing its development program. The weak points of High Tower Department Stores Imported Stuffed Animals Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, 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 must propose certain expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Although, the growth of the publishing market is declining since 2008, impacting High Tower Department Stores Imported Stuffed Animals Case Study Solution also, however the growth could be restored by availing specific opportunities provided in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented specific dangers to High Tower Department Stores Imported Stuffed Animals Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of High Tower Department Stores Imported Stuffed Animals Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with existence of high competitors increases the risk of losing the consumer base.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall incomes of High Tower Department Stores Imported Stuffed Animals Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the company is quite efficient in attracting a big number of customers at a possible rate.
Together with it, the 2nd chart which reveals the annual growth in the High Tower Department Stores Imported Stuffed Animals Case Study Analysis total assets, shows that the business is rather effective in including worth to its properties through its earnings. The growth in assets reveals that the overall worth of the firm is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis relating to the circulation of overall profits of the business. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a possible growth to attain its future advancement goal.
PESTEL analysis could be conducted to discover the different external forces affecting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind 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. It could be said that the overall political forces impacting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the High Tower Department Stores Imported Stuffed Animals Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the financial policies related to the import of books impact the general business at CPM. China's financial conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and technology along with the rise of digital publishing could reduce the need for the CMP products, if particular actions would not be taken soon.
Ecological forces affecting High Tower Department Stores Imported Stuffed Animals Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the beauty of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on particular websites. The changing consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the High Tower Department Stores Imported Stuffed Animals Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general 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 presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of High Tower Department Stores Imported Stuffed Animals Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as High Tower Department Stores Imported Stuffed Animals Case Study Analysis and CIP. It is also one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the company to lose need of its products in the market.
As the preferences are moving towards digital publishing and the business need an instant solution to avoid the declining industry growth. The company could also think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the information related to the consumer need, the possible markets, the federal government guidelines and the data related to the competitors presented in the market. If the initial offering shows a success, the business needs to go for the other markets. In this method the company would be able to implement its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, revealing a danger to the company's long term presence, but the circumstance can be controlled by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.