Honda Motor Co Case Study Solution and Analysis
Intro
Honda Motor Co Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details supplier and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Honda Motor Co Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Honda Motor Co Case Study Analysis has specific strengths that can be used to decrease the risks, overcome the weakness and avail 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 company to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the company to think about a number of development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Honda Motor Co Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has traditional ways 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 expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing because 2008, impacting Honda Motor Co Case Study Analysis too, however the growth could be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has actually presented particular threats to Honda Motor Co Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Honda Motor Co Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market along with presence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a quite competitive monetary efficiency. Due to lack of data, the monetary ratios of CMP could not be calculated. The overall monetary performance of the company could be examined by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly total profits of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Honda Motor Co Case Study Help is growing and the business is rather effective in bring in a a great deal of customers at a potential price.
In addition to it, the 2nd graph which shows the yearly growth in the Honda Motor Co Case Study Help overall possessions, shows that the company is quite efficient in adding value to its assets through its incomes. The development in properties reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the distribution of overall revenues of the business. Major part of the profits 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 organisation sectors with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the recent patterns 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 might have a considerable effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the general political forces impacting Honda Motor Co Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Honda Motor Co Case Study Analysis in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the total service at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Honda Motor Co Case Study Analysis consists of the concerns of ecological communities 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 ought to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in new entrants to the publishing market. However, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the documents provided in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Honda Motor Co Case Study Solution include the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Honda Motor Co Case Study Analysis 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 publishes similar type of books. For a big time period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market sections, with a significant focus on educational publications. CIP acts as a danger 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 market share of Honda Motor Co Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise among 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
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. Therefore, introduction of digital publishing might show to be an immediate solution with low quantity of risk for the company. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must first gathers the information related to the customer demand, the prospective markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a hazard to the company's long term presence, but the scenario can be managed by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.
