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Hq Sustainable Maritime Industries Inc Case Study Solution and Analysis


Introduction

Hq Sustainable Maritime Industries Inc Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Critical Concerns

CMP has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and Hq Sustainable Maritime Industries Inc Case Study Analysis in particular. These factors include;

• Entrance of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and technology.
Executive Summary
The change of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be used to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Hq Sustainable Maritime Industries Inc Case Study Help has specific strengths that can be utilized to minimize the dangers, overcome the weakness and obtain the chances. Strengths of CMP are given as follows;

• The long term experience of Hq Sustainable Maritime Industries Inc Case Study Analysis in the publishing market i.e. 60 years allows the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the business to think about several advancement opportunities without any worry of raising fund externally.

Weaknesses

Along with the strengths, the business has specific weaknesses which might increase constraints for the business in executing its advancement program. The weak points of Hq Sustainable Maritime Industries Inc Case Study Solution are offered as follows;

• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing industry is declining considering that 2008, affecting Hq Sustainable Maritime Industries Inc Case Study Solution as well, however the development could be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;

• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.

Hazards

The altering macro patterns in the market and increasing competition in the publishing industry has actually presented specific hazards to Hq Sustainable Maritime Industries Inc Case Study Help including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Hq Sustainable Maritime Industries Inc Case Study Solution 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 rivals can gain a strong customer base by utilizing particular methods like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the industry together with presence of high competition increases the danger of losing the customer base.

Monetary Analysis.
Swot Analysis
Due to lack of information, the financial ratios of CMP might not be calculated. It might be examined from the Appendix III that the annual overall earnings of Hq Sustainable Maritime Industries Inc Case Study Analysis during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the company is rather effective in bring in a large number of clients at a possible rate.

Along with it, the 2nd chart which reveals the annual growth in the Hq Sustainable Maritime Industries Inc Case Study Solution total assets, shows that the business is quite efficient in including worth to its possessions through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the overall profits. (Unidentified, 2013).

Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of overall incomes of the business. Huge part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sectors with a possible development to accomplish its future development goal.

PESTEL Analysis

PESTEL analysis could be carried out to find out the numerous external forces affecting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. For that reason, it might be said that the total political forces affecting Hq Sustainable Maritime Industries Inc Case Study Analysis business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces include the population development, the customer's preferences towards checking out useful products etc. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Hq Sustainable Maritime Industries Inc Case Study Solution. The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.

Technological.

Technological forces affecting the CMP include the technological improvement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the need for the CMP products, if particular actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces impacting Hq Sustainable Maritime Industries Inc Case Study Solution includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be damaging for the environment.

Legal.

Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.

Market Analysis (Porter's Five Forces Model).

Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.

Risk of New Entrants.

Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.

Risk of Substitution.

Threat of Alternative is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the virtual libraries on certain websites. The changing customer preferences towards digital learning increase the risk of replacement for the market.

Competitive Competition.

Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise participating in the market increasing the competitors for CMP.

Bargaining Power of Supplier.

The major providers of the Hq Sustainable Maritime Industries Inc Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall 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 buyers requires high quality files at competitive costs.

Competitors Analysis.

CMP runs in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Hq Sustainable Maritime Industries Inc Case Study Solution include;.

• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Market Press (CIP).

CIPis one of the close rivals of CMP. Established in the exact same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in numerous market segments, with a significant focus on academic publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Hq Sustainable Maritime Industries Inc Case Study Solution easily in the existing market scenario.

Posts and telecommunication Press (PTP).

It was also founded in the exact same period as Hq Sustainable Maritime Industries Inc Case Study Solution and CIP. It is also one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

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

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

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining customer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose need of its products in the market.

Suggestions

With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the declining industry development. For that reason, intro of digital publishing could show to be an immediate service with low amount of risk for the company. The business could likewise think about the expansion program after the success of its digital publishing program.

Application

In order to introduce digital publishing in its product portfolio, the company must initially gathers the information associated with the customer demand, the potential markets, the government regulations and the data associated with the rivals provided in the market. After that, the company ought to decide one prospective sector for its initial offering. It ought to gather research that how it could separate its digital publishing from the existing rivals' items. The actions above the business must go for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would be able to execute its digital publishing program.

Conclusion

The development of the publishing industry is decreasing since 2008, showing a threat to the company's long term existence, but the situation can be controlled by thinking about a development plan in the future. The company could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entryway in the new markets.

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