Hindustan Unilevers Pureit Water Purifier Case Study Solution and Analysis
Intro
Hindustan Unilevers Pureit Water Purifier Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information service provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing market in basic and Hindustan Unilevers Pureit Water Purifier Case Study Solution in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hindustan Unilevers Pureit Water Purifier Case Study Solution has specific strengths that can be made use of to lower the hazards, get rid of the weak point and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Hindustan Unilevers Pureit Water Purifier Case Study Analysis in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position enables the company to think about a number of development opportunities with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Hindustan Unilevers Pureit Water Purifier Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting Hindustan Unilevers Pureit Water Purifier Case Study Help too, however the growth might be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition 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 utilizing its large financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has posed particular risks to Hindustan Unilevers Pureit Water Purifier Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Hindustan Unilevers Pureit Water Purifier Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain methods like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
The business has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be computed. The general financial performance of the company might be examined by utilizing the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Hindustan Unilevers Pureit Water Purifier Case Study Analysis is growing and the company is rather effective in drawing in a large number of consumers at a potential cost.
Along with it, the second chart which shows the annual development in the Hindustan Unilevers Pureit Water Purifier Case Study Analysis overall assets, shows that the business is quite efficient in including value to its possessions through its revenues. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided information could be the analysis concerning the circulation of overall earnings of the business. Huge part of the incomes 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 service sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the various external forces impacting the performance of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. It could be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Hindustan Unilevers Pureit Water Purifier Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used 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 policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the digital libraries on particular websites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
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, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Hindustan Unilevers Pureit Water Purifier Case Study Help 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 provider for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Hindustan Unilevers Pureit Water Purifier Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the same period, CIP publishes comparable type of books. For a large time period, CIP held the biggest market share, and still ranks second and 3rd in numerous market segments, with a major focus on instructional publications. CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Hindustan Unilevers Pureit Water Purifier Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as Hindustan Unilevers Pureit Water Purifier Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the business ought to initially gathers the data related to the customer demand, the potential markets, the government regulations and the information associated with the competitors presented in the market. After that, the company must decide one potential segment for its initial offering. It ought to collect research study that how it could separate its digital publishing from the existing rivals' products. After all the actions above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business might consider 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.
