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Hindustan Petroleum Corporation Ltd Case Study Solution and Analysis


Introduction

Hindustan Petroleum Corporation Ltd Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information service provider and a big extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Crucial Concerns

Although, Hindustan Petroleum Corporation Ltd Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing industry 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 methods
• Improvement of science and technology.
Executive Summary
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of 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


Hindustan Petroleum Corporation Ltd Case Study Solution has particular strengths that can be used to minimize the dangers, overcome the weak point and obtain the chances. Strengths of CMP are offered as follows;

• The long term experience of Hindustan Petroleum Corporation Ltd Case Study Help in the publishing market i.e. 60 years permits the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high value to its customers.
• Strong financial position allows the business to think about a number of advancement chances with no worry of raising fund externally.

Weak points

Together with the strengths, the company has particular weak points which might increase restraints for the business in implementing its advancement program. The weak points of Hindustan Petroleum Corporation Ltd Case Study Solution are offered as follows;

• Despite of being a science and technology publishing firm, the company still has conventional methods 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 prevent its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the development of the publishing market is decreasing considering that 2008, affecting Hindustan Petroleum Corporation Ltd Case Study Solution as well, however the growth might be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP consist of;

• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large financial resources.

Hazards

The altering macro patterns in the market and increasing competitors in the publishing market has positioned certain threats to Hindustan Petroleum Corporation Ltd Case Study Analysis consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Hindustan Petroleum Corporation Ltd Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the risk of losing the consumer base.

Financial Analysis.
Swot Analysis
The business has a rather competitive monetary performance. Due to absence of data, the financial ratios of CMP might not be calculated. The overall monetary efficiency of the business might be examined by using the charts given in the case Appendices. It could be examined from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Hindustan Petroleum Corporation Ltd Case Study Solution is growing and the business is quite effective in attracting a a great deal of customers at a possible price.

In addition to it, the second chart which shows the annual development in the Hindustan Petroleum Corporation Ltd Case Study Help overall possessions, shows that the company is rather efficient in adding worth to its properties through its revenues. The development in possessions shows that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).

Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall profits of the business. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sectors with a prospective development to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis might be performed to learn the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Hindustan Petroleum Corporation Ltd Case Study Solution service are high. The government policies relating to the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population development, the customer's preferences towards reading useful products and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of customers of the Hindustan Petroleum Corporation Ltd Case Study Help. Nevertheless, the customer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer choices.

Technological.

Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Hindustan Petroleum Corporation Ltd Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should not be hazardous for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.

Danger of New Entrants.

Risks of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to draw in brand-new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.

Hazard of Alternative.

Threat of Alternative is high for the Chinese Publishing Industry. The alternative products for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the risk of alternative for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The presence 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 entering into the market increasing the competition for CMP.

Bargaining Power of Provider.

The significant providers of the Hindustan Petroleum Corporation Ltd Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.

Bargaining Power of Buyer.

Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive costs.

Rivals Analysis.

CMP runs in an extremely competitive market with the presence of large number of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Hindustan Petroleum Corporation Ltd Case Study Solution include;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a hazard 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 also founded in the same period as Hindustan Petroleum Corporation Ltd Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Usage of potential resources in growth.
• Danger of failure in new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.

Cons

• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.

Recommendations

As the preferences are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing industry growth. The business could likewise think about the growth program after the success of its digital publishing program.

Implementation

In order to present digital publishing in its item portfolio, the business needs to initially gathers the information related to the consumer need, the prospective markets, the federal government guidelines and the data 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 method the business would be able to implement its digital publishing program.

Conclusion

Although, the growth of the publishing industry is declining because 2008, showing a risk to the company's long term existence, but the situation can be managed by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.

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