Highbridge Capital Management Building A Sustainable Organization Case Study Solution and Analysis
Introduction
Highbridge Capital Management Building A Sustainable Organization Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a big comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and Highbridge Capital Management Building A Sustainable Organization Case Study Analysis in specific. These aspects consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
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 important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Highbridge Capital Management Building A Sustainable Organization Case Study Help has specific strengths that can be utilized to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Highbridge Capital Management Building A Sustainable Organization Case Study Solution in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong monetary position allows the company to think about numerous advancement opportunities without any fear of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which could increase constraints for the business in executing its advancement program. The weaknesses of Highbridge Capital Management Building A Sustainable Organization Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its dependence over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Highbridge Capital Management Building A Sustainable Organization Case Study Solution as well, however the development might be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also present 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 expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually presented particular dangers to Highbridge Capital Management Building A Sustainable Organization Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Highbridge Capital Management Building A Sustainable Organization Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific methods like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market together with existence of high competitors increases the threat of losing the customer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total earnings of Highbridge Capital Management Building A Sustainable Organization Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a big number of consumers at a possible rate.
Along with it, the second graph which shows the annual development in the Highbridge Capital Management Building A Sustainable Organization Case Study Help total possessions, reveals that the business is quite effective in including worth to its assets through its earnings. The growth in possessions shows that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the circulation of total profits of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces impacting the efficiency of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces affecting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
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 general GDP growth of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Highbridge Capital Management Building A Sustainable Organization Case Study Analysis consists of the issues of environmental 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 needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the documents provided in the digital libraries on specific websites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of customers 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 participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Highbridge Capital Management Building A Sustainable Organization Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Highbridge Capital Management Building A Sustainable Organization 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. Established in the same period, CIP releases comparable kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in different market sectors, with a major concentrate on educational publications. CIP functions as a danger 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 market share of Highbridge Capital Management Building A Sustainable Organization Case Study Analysis easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Highbridge Capital Management Building A Sustainable Organization Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant service to prevent the declining market growth. The business might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should first collects the information related to the consumer need, the potential markets, the government policies and the information related to the rivals presented in the market. If the initial offering proves a success, the company should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, revealing a danger to the business's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could think about introducing digital publishingin its existing market to execute its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
