Honest Tea Case Case Study Solution and Analysis
Intro
Honest Tea Case Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting info, processing info and interaction services. Significant business sectors of the business include; books, regulars, consultancy and circulation. The company has a vast product portfolio and its significant items include books, periodicals, online media, exhibitions, research study reports and so on. Honest Tea Case Case Study Analysis has ended up being a specialized information company and a large thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Honest Tea Case Case Study Solution has spent its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These elements consist of;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised several 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 business could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Honest Tea Case Case Study Help has certain strengths that can be utilized to decrease the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Honest Tea Case Case Study Help in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong financial position allows the company to think about several advancement opportunities with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which could increase restrictions for the company in implementing its advancement program. The weaknesses of Honest Tea Case Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining because 2008, affecting Honest Tea Case Case Study Help as well, but the development might be restored by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition 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 financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has positioned particular hazards to Honest Tea Case Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause declining market share of Honest Tea Case Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The business has a rather competitive monetary efficiency. Due to absence of information, the financial ratios of CMP could not be determined. The overall monetary performance of the company could be analyzed by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Honest Tea Case Case Study Solution is growing and the business is rather efficient in bring in a large number of clients at a prospective rate.
In addition to it, the 2nd chart which shows the yearly development in the Honest Tea Case Case Study Help total possessions, shows that the company is quite efficient in adding worth to its assets through its incomes. The growth in assets reveals that the overall worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the distribution of overall incomes of the company. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other company segments with a possible development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces impacting CMP organisation are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading useful materials etc. China has the highest population worldwide with a high population development, revealing the increasing number of customers of the Honest Tea Case Case Study Help. The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could lower the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces impacting Honest Tea Case Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The alternative products for the published documents is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Honest Tea Case Case Study Help include the suppliers of the paper for publishing documents. 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 Buyer.
Bargaining 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 buyers needs high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Honest Tea Case Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 market share of CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the company need an immediate service to avoid the declining industry growth. Intro of digital publishing might prove to be an instant service with low amount of danger for the business. However, the company might also consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer demand, the prospective markets, the federal government guidelines and the data associated with the competitors presented in the market. After that, the business must choose one potential sector for its initial offering. It ought to collect research study that how it might separate its digital publishing from the existing competitors' items. After all the actions above the business must opt for the preliminary offering. If the preliminary offering shows a success, the business needs to go for the other markets. In this method the business would have the ability to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining given that 2008, revealing a hazard to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
