Houghton Miffline Harcourt Case Study Solution and Analysis
Houghton Miffline Harcourt Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering details, processing details and interaction services. Major organisation sections of the business consist of; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports and so on. Houghton Miffline Harcourt Case Study Solution has actually ended up being a specialized details supplier and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Houghton Miffline Harcourt Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised a number of 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 abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Houghton Miffline Harcourt Case Study Solution has certain strengths that can be utilized to minimize the risks, overcome the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Houghton Miffline Harcourt Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position allows the business to think about a number of advancement chances without any worry of raising fund externally.
In addition to the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its development program. The weak points of Houghton Miffline Harcourt Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to prevent its dependence over the Chinese markets to attain long term development.
The development of the publishing market is declining considering that 2008, impacting Houghton Miffline Harcourt Case Study Analysis as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast funds.
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific threats to Houghton Miffline Harcourt Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Houghton Miffline Harcourt Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing firms in the market along with existence of high competition increases the hazard of losing the client base.
The company has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. The general financial efficiency of the business might be examined by utilizing the graphs given in the case Appendices. It might be analyzed from the Appendix III that the annual overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Houghton Miffline Harcourt Case Study Analysis is growing and the company is rather efficient in attracting a large number of customers at a prospective cost.
Together with it, the 2nd chart which reveals the annual growth in the Houghton Miffline Harcourt Case Study Solution total properties, shows that the business is rather efficient in including worth to its assets through its earnings. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the provided information could be the analysis concerning the distribution of total revenues of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sectors with a possible growth to accomplish its future advancement goal.
PESTEL analysis could be conducted to learn 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 company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It might be said that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Financial forces affecting the publishing sector in general and the Houghton Miffline Harcourt Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies connected to the import of books affect the overall business at CPM. China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out useful products and so on. China has the greatest population worldwide with a high population development, revealing the increasing number of customers of the Houghton Miffline Harcourt Case Study Solution. However, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental forces impacting Houghton Miffline Harcourt Case Study Analysis includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design might be used to examine the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The substitute items for the published documents is the documents provided in the digital libraries on specific websites. The altering customer choices towards digital learning increase the danger of substitution for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Houghton Miffline Harcourt Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Houghton Miffline Harcourt Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the popular gamers in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose demand of its products in the market.
As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing market development. The business might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company must first collects the data related to the customer need, the prospective markets, the federal government regulations and the information related to the rivals presented in the market. If the initial offering shows a success, the business must go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is decreasing given that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.