Hip Hop B Cant Stop Wont Stop Case Study Solution and Analysis
Intro
Hip Hop B Cant Stop Wont Stop Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; gathering information, processing information and communication services. Significant company sections of the company consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports etc. Hip Hop B Cant Stop Wont Stop Case Study Solution has become a specialized information provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Critical Concerns
Although, Hip Hop B Cant Stop Wont Stop Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hip Hop B Cant Stop Wont Stop Case Study Analysis has particular strengths that can be used to minimize the risks, get rid of the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Hip Hop B Cant Stop Wont Stop Case Study Solution in the publishing market i.e. 60 years enables the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its clients.
• Strong financial position permits the company to think about several development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has certain weak points which might increase restraints for the business in implementing its advancement program. The weak points of Hip Hop B Cant Stop Wont Stop Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Hip Hop B Cant Stop Wont Stop Case Study Solution also, however the development could be revived by availing certain chances presented in the market. The marketplace chances for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has presented particular hazards to Hip Hop B Cant Stop Wont Stop Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Hip Hop B Cant Stop Wont Stop Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal 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 customer base by using specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market along with presence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It might be evaluated from the Appendix III that the yearly overall earnings of Hip Hop B Cant Stop Wont Stop Case Study Help throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a big number of customers at a prospective cost.
Together with it, the second graph which reveals the yearly growth in the Hip Hop B Cant Stop Wont Stop Case Study Help overall possessions, shows that the company is rather efficient in adding worth to its properties through its earnings. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the total earnings. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis regarding the circulation of overall revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation sectors with a potential development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered 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 government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. It could be stated that the overall political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Hip Hop B Cant Stop Wont Stop Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Hip Hop B Cant Stop Wont Stop Case Study Solution consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective 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 brand-new entrants to enter in the market.
Threat of Replacement.
Threat of Substitution is high for the Chinese Publishing Industry. The replacement products for the released files is the documents provided in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry 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. Along with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Hip Hop B Cant Stop Wont Stop Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Hip Hop B Cant Stop Wont Stop Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same period as Hip Hop B Cant Stop Wont Stop Case Study Help and CIP. It is also one of the prominent players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining market growth. Therefore, intro of digital publishing could prove to be an immediate service with low quantity of threat for the company. The business could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business needs to first collects the data related to the consumer demand, the prospective markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a hazard to the business's long term presence, however the scenario can be managed by thinking about a development strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
