Hotel Ivory 2 Case Study Solution and Analysis
Intro
Hotel Ivory 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a big extensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Hotel Ivory 2 Case Study Help has 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 CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies 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 numerous 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 business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hotel Ivory 2 Case Study Solution has particular strengths that can be used to decrease the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Hotel Ivory 2 Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high worth to its clients.
• Strong monetary position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has particular weak points which might increase restraints for the business in implementing its advancement program. The weak points of Hotel Ivory 2 Case Study Solution are provided as follows;
• Despite of being a science and technology 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 must propose certain expansion plans to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing since 2008, affecting Hotel Ivory 2 Case Study Analysis as well, however the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has postured specific hazards to Hotel Ivory 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Hotel Ivory 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using certain strategies like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the threat of losing the customer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to lack of information, the monetary ratios of CMP might not be calculated. The overall monetary performance of the business could be examined by utilizing the charts provided in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of Hotel Ivory 2 Case Study Solution is growing and the company is rather effective in bring in a a great deal of clients at a prospective price.
In addition to it, the second chart which shows the annual growth in the Hotel Ivory 2 Case Study Analysis total possessions, shows that the business is rather efficient in including value to its possessions through its revenues. The growth in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of overall incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other company sections with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it might be stated that the general political forces impacting Hotel Ivory 2 Case Study Solution service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Enhancement of science and innovation along with the rise of digital publishing might lower the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Hotel Ivory 2 Case Study Solution includes the concerns of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The substitute items for the released files is the files provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Hotel Ivory 2 Case Study Solution 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 general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Hotel Ivory 2 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. Established in the same duration, CIP releases comparable 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 educational publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the marketplace share of Hotel Ivory 2 Case Study Help quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Hotel Ivory 2 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible 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 using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business require an instant option to avoid the decreasing market development. The business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first gathers the data associated with the consumer demand, the potential markets, the government guidelines and the information connected to the rivals presented in the market. After that, the company must choose one prospective segment for its initial offering. It ought to gather research that how it could separate its digital publishing from the existing rivals' items. After all the steps above the company need to choose the initial offering. The business ought to go for the other markets if the initial offering shows a success. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a hazard to the company's long term presence, but the circumstance can be managed by considering an advancement strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
