Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution and Analysis
Introduction
Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering details, processing info and communication services. Major organisation sectors of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its significant products include books, regulars, online media, exhibitions, research reports etc. Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis has actually ended up being a specialized info service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help in particular. These factors consist of;
• Entrance of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the company 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
Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution has specific strengths that can be made use of to lower the risks, get rid of the weakness and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and abilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high value to its customers.
• Strong monetary position enables the company to think about a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its development program. The weaknesses of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose particular expansion plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing considering that 2008, affecting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help too, but the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP consist of;
• The business might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing market has presented particular hazards to Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by using certain methods like aggressive promotion, quality items, etc.
• Entryway of new publishing firms in the industry along with existence of high competition increases the threat of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly overall revenues of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in attracting a large number of customers at a prospective price.
In addition to it, the 2nd graph which reveals the yearly growth in the Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help overall possessions, reveals that the business is rather efficient in including worth to its properties through its earnings. The development in possessions shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall incomes of the company. Huge 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 company might move towards other business sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the efficiency of the company and the current patterns 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 could have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces impacting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis consists of the issues of ecological neighborhoods 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 needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the files provided in the virtual libraries on certain websites. The changing customer choices towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 market share of CMP easily in the current market scenario.
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 service scale. It is likewise one of the popular gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors 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 products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant service to avoid the decreasing market development. Therefore, intro of digital publishing might prove to be an instant service with low amount of danger for the company. Nevertheless, the business might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should initially collects the data related to the customer need, the prospective markets, the federal government regulations and the data related to the rivals provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a danger to the business's long term existence, but the situation can be managed by thinking about an advancement plan in the future. The company might consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
