Honda Motor Co Case Study Solution and Analysis
Honda Motor Co Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting details, processing information and communication services. Major organisation sectors of the business consist of; books, regulars, consultancy and distribution. The business has a large product portfolio and its major products include books, periodicals, online media, exhibits, research reports etc. Honda Motor Co Case Study Analysis has actually become a specialized information provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market trends and forces bring specific challenges to the publishing market in general and Honda Motor Co Case Study Help in particular. These aspects consist of;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing 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 numerous 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 abilities of the company could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Honda Motor Co Case Study Help has specific strengths that can be used to minimize the threats, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Honda Motor Co Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality products at a lower expense using its prior experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and offer high worth to its customers.
• Strong monetary position allows the company to think about a number of development chances without any worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which might increase constraints for the company in implementing its development program. The weak points of Honda Motor Co Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing market is declining given that 2008, affecting Honda Motor Co Case Study Solution as well, but the development could be revived by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast financial resources.
The changing macro patterns in the market and increasing competition in the publishing industry has positioned certain hazards to Honda Motor Co Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Honda Motor Co Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using particular techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with presence of high competition increases the threat of losing the consumer base.
Due to absence of information, the monetary ratios of CMP could not be calculated. It might be analyzed from the Appendix III that the yearly total incomes of Honda Motor Co Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the annual demand of the products of CMP is growing and the company is quite effective in attracting a large number of consumers at a prospective rate.
In addition to it, the 2nd chart which shows the yearly growth in the Honda Motor Co Case Study Help overall properties, reveals that the business is rather effective in adding worth to its properties through its revenues. The development in assets reveals that the total value of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the distribution of total profits of the company. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible development to accomplish its future advancement goal.
PESTEL analysis could be performed to learn the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial effect on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP organisation are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Honda Motor Co Case Study Analysis in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the general company at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer choices.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP products, if certain actions would not be taken quickly.
Environmental forces affecting Honda Motor Co Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized 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 analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. Nevertheless, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative products for the released files is the documents presented in the digital libraries on certain sites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Honda Motor Co Case Study Help 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 total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
CMP runs in an extremely competitive industry with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Honda Motor Co Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks 2nd and third in numerous market sections, with a significant concentrate on instructional publications. CIP serves as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Honda Motor Co Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same duration as Honda Motor Co Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the company need an immediate option to prevent the decreasing market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must first gathers the data related to the customer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the business needs to choose one prospective segment for its initial offering. It must collect research study that how it might differentiate its digital publishing from the existing competitors' products. The actions above the business need to go for the initial offering. The business needs to go for the other markets if the initial offering shows a success. In this way the business would have the ability to execute its digital publishing program.
The growth of the publishing industry is decreasing since 2008, revealing a risk to the business's long term existence, however the situation can be controlled by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.