Hp Product Variety Management Case Study Solution and Analysis
Hp Product Variety Management Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Although, Hp Product Variety Management Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Hp Product Variety Management Case Study Solution has specific strengths that can be used to reduce the dangers, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Hp Product Variety Management Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its threat and supply high worth to its consumers.
• Strong financial position enables the business to consider numerous development opportunities with no fear of raising fund externally.
Along with the strengths, the business has certain weak points which could increase restrictions for the business in executing its development program. The weak points of Hp Product Variety Management Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the development of the publishing market is decreasing since 2008, impacting Hp Product Variety Management Case Study Analysis as well, but the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its vast financial resources.
The altering macro trends in the market and increasing competitors in the publishing market has actually presented particular risks to Hp Product Variety Management Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Hp Product Variety Management Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competition increases the risk of losing the consumer base.
The company has a quite competitive monetary performance. Due to absence of information, the monetary ratios of CMP could not be determined. However, the overall monetary performance of the business might be examined by utilizing the charts given up the case Appendices. It could be evaluated from the Appendix III that the yearly total earnings of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Hp Product Variety Management Case Study Help is growing and the business is quite efficient in bring in a large number of clients at a possible rate.
In addition to it, the 2nd graph which reveals the annual development in the Hp Product Variety Management Case Study Help overall assets, reveals that the company is quite effective in adding value to its possessions through its incomes. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the offered data might be the analysis concerning the circulation of overall earnings of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible development to attain its future development goal.
PESTEL analysis could be carried out to learn the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal 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 might be stated that the total political forces impacting Hp Product Variety Management Case Study Solution 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 Hp Product Variety Management Case Study Help in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the financial policies associated with the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out useful products and so on. China has the greatest population in the world with a high population growth, revealing the increasing number of consumers of the Hp Product Variety Management Case Study Solution. Nevertheless, the customer choices are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer choices.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if specific actions would not be taken quickly.
Environmental forces impacting Hp Product Variety Management 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 disposable and the ink used while publishing must not be damaging for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could 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.
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 market. The existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released files is the files presented in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the threat of substitution for the market.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Hp Product Variety Management Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 buyers requires high quality files at competitive rates.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Hp Product Variety Management Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant concentrate on academic publications. CIP functions as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of Hp Product Variety Management Case Study Solution quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose need of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an instant solution to avoid the decreasing industry development. Introduction of digital publishing could show to be an immediate solution with low amount of danger for the company. The company could also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company should first gathers the data associated with the customer need, the potential markets, the government regulations and the information related to the rivals presented in the market. After that, the company should choose one possible section for its preliminary offering. It needs to collect research that how it might distinguish its digital publishing from the existing rivals' products. The actions above the business must go for the initial offering. The company should go for the other markets if the initial offering proves a success. In this method the company would be able to execute its digital publishing program.
Although, the development of the publishing market is declining since 2008, showing a danger to the business's long term presence, however the situation can be controlled by thinking about a development strategy in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.