Ho Chi Minh City Case Study Solution and Analysis
Intro
Ho Chi Minh City Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Ho Chi Minh City Case Study Help has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in particular. These aspects include;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The transformation 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 scenario? Do the long important experience, technical resources and the abilities of the company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Ho Chi Minh City Case Study Solution has specific strengths that can be made use of to lower the risks, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of Ho Chi Minh City Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and supply high value to its consumers.
• Strong financial position permits the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weak points which could increase constraints for the company in executing its development program. The weaknesses of Ho Chi Minh City Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining since 2008, impacting Ho Chi Minh City Case Study Analysis as well, but the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also introduce 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 expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has presented particular risks to Ho Chi Minh City Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Ho Chi Minh City Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular strategies like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of information, the financial ratios of CMP could not be determined. The overall financial efficiency of the business might be evaluated by using the graphs provided in the case Appendices. It might be examined from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Ho Chi Minh City Case Study Analysis is growing and the business is quite efficient in attracting a a great deal of consumers at a potential price.
In addition to it, the second graph which reveals the yearly development in the Ho Chi Minh City Case Study Help total assets, reveals that the business is quite efficient in including worth to its possessions through its revenues. The growth in assets shows that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the circulation of overall earnings of the business. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. Therefore, it might be stated that the total political forces affecting Ho Chi Minh City Case Study Analysis organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Ho Chi Minh City Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall service at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading useful products and so on. China has the highest population in the world with a high population development, showing the increasing variety of consumers of the Ho Chi Minh City Case Study Help. However, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Ho Chi Minh City 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 utilized while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Ho Chi Minh City Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser 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 purchasers requires high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Ho Chi Minh City Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Established in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks third and second in numerous market sectors, with a major concentrate on instructional publications. CIP serves 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 marketplace share of Ho Chi Minh City Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Ho Chi Minh City Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The company could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially collects the information related to the consumer need, the potential markets, the government guidelines and the information related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining because 2008, revealing a risk to the company's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
