Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution and Analysis
Introduction
Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help has specific strengths that can be utilized to decrease the dangers, conquer the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and offer high worth to its consumers.
• Strong monetary position permits the business to consider several development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase constraints for the company in executing its development program. The weak points of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis too, however the development might be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed certain hazards to Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using certain techniques like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with presence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be evaluated from the Appendix III that the yearly overall incomes of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite efficient in drawing in a large number of clients at a potential cost.
Together with it, the 2nd graph which shows the annual growth in the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help total assets, shows that the company is rather effective in adding value to its possessions through its profits. The growth in assets reveals that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis relating to the distribution of total profits of the business. Major part of the revenues 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 growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces affecting the performance of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. For that reason, it might be stated that the overall political forces impacting Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative products and so on. China has the greatest population on the planet with a high population growth, revealing the increasing number of customers of the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis. Nevertheless, the customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement items for the published files is the files presented in the virtual libraries on specific websites. The changing consumer choices towards digital knowing increase the threat of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks second and third in numerous market segments, with a major focus on academic publications. CIP serves 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 might wean the marketplace share of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help and CIP. It is likewise one of the popular players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose need of its products in the market.
Recommendations
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 accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate service to prevent the decreasing market development. Introduction of digital publishing could prove to be an immediate option with low quantity of danger for the company. The company might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to initially collects the data related to the consumer need, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
