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Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution and Analysis


Intro

Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a large extensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.

Important Problems

CMP has actually invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help in particular. These elements consist of;

• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
Executive Summary
The change of the macro markets have raised numerous questions 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 pursue 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 Help has certain strengths that can be made use of to reduce the hazards, overcome the weakness and avail the chances. 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 provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its danger and provide high worth to its clients.
• Strong financial position permits the business to consider a number of advancement opportunities with no fear of raising fund externally.

Weak points

In addition to the strengths, the company has specific weaknesses which might increase constraints for the business in executing its advancement program. The weaknesses of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis are offered as follows;

• Despite of being a science and innovation publishing company, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to prevent its dependence over the Chinese markets to attain long term development.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining considering that 2008, impacting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis as well, but the development could be restored by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;

• The company might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its huge funds.

Dangers

The changing macro patterns in the market and increasing competitors in the publishing market has posed particular dangers to Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis consisting of;( Gurel, 2017).

• Introduction of digital publishing i.e. digital libraries could cause declining market share of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly overall earnings of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of clients at a potential rate.

In addition to it, the second graph which shows the yearly growth in the Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis overall assets, reveals that the company is quite efficient in including value to its possessions through its revenues. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the overall earnings. (Unidentified, 2013).

Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential development to accomplish its future advancement objective.

PESTEL Analysis

PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a considerable influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the overall political forces impacting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.

Affordable.

Economic forces impacting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth 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 development, the consumer's choices towards checking out informative materials and so on. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer choices.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the rise of digital publishing could reduce the demand for the CMP items, if particular actions would not be taken quickly.

Environmental.
Vrio Analysis
Ecological forces affecting Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Analysis includes the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.

Legal.

Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially 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 used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.

Threat of New Entrants.

Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.

Risk of Replacement.

Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the published documents is the files provided in the virtual libraries on specific sites. The altering customer choices towards digital knowing increase the danger of alternative for the market.

Competitive Competition.

Competitive rivalry in the publishing market 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. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Bargaining power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.

Rivals Analysis.

CMP operates in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major 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 Market Press (CIP).

CIPis among the close rivals of CMP. Founded in the very same duration, CIP publishes similar type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in numerous market sectors, with a significant concentrate on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Hong Kong Business Intermediary A Launching Pad For Entrepreneurs Case Study Help quickly in the current market scenario.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.

Cons
Recommendations
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.

Alernative-2: Present Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies 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 need 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 competitor analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant service to avoid the declining industry development. Introduction of digital publishing might prove to be an instant solution with low amount of danger for the company. However, the business might also think about the growth program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the company must first collects the information associated with the consumer need, the possible markets, the government regulations and the data related to the competitors presented in the market. After that, the business ought to choose one prospective section for its preliminary offering. It ought to gather research study that how it might distinguish its digital publishing from the existing competitors' items. After all the actions above the company need to opt for the preliminary offering. If the preliminary offering proves a success, the company ought to go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the growth of the publishing industry is declining since 2008, showing a threat to the company's long term presence, but the situation can be managed by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the threat of failure for entryway in the new markets.

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