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Huanghe Institute Of Science And Technology B The Dream Continues Case Solution

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Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution and Analysis


Intro

Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big detailed Science and Technology publishing business through the integration of print media, audio-visual media and the network media.

Important Problems

CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in general and Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help in particular. These aspects consist of;

• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
Executive Summary
The transformation of the macro markets have raised a number of 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 made use of to pursue 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 Analysis has certain strengths that can be utilized to reduce the dangers, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;

• The long term experience of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and offer high value to its customers.
• Strong financial position enables the company to think about a number of development chances without any fear of raising fund externally.

Weaknesses

Along with the strengths, the business has certain weaknesses which could increase restraints for the company in implementing its advancement program. The weaknesses of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help are given as follows;

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

Although, the development of the publishing industry is decreasing given that 2008, impacting Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis as well, but the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP include;

• The business might likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its large funds.

Threats

The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned particular dangers to Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries could result in declining 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 presence of a great deal 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 methods like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
Due to lack of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the yearly total incomes of Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite efficient in bring in a big number of consumers at a potential price.

In addition to it, the 2nd chart which shows the yearly growth in the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help total properties, reveals that the business is rather efficient in including worth to its assets through its profits. The growth in properties shows that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).

Another financial analysis of the company using the given data might be the analysis relating to the circulation of overall profits of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a possible growth to achieve its future advancement objective.

PESTEL Analysis

PESTEL analysis might be conducted to learn the various external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.

Economical.

Economic forces impacting the publishing sector in basic and the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Analysis in particular includesthe rates 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. Along with it, the economic policies associated with the import of books affect the overall business at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.

Social and Demographical.

The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to meet the changing customer choices.

Technological.

Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation together with the increase of digital publishing could lower the demand for the CMP products, if specific actions would not be taken soon.

Environmental.
Vrio Analysis
Environmental forces affecting Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help consists of the issues of ecological neighborhoods 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 used while publishing should not be hazardous for the environment.

Legal.

Legal guidelines 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 approved first by the Government to be entered in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.

Industry Analysis (Porter's Five Forces Design).

Porter's 5 Forces Model might be utilized to evaluate the beauty of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.

Threat of New Entrants.

Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.

Threat of Replacement.

Danger of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on particular sites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.

Competitive Rivalry.

Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.

Bargaining Power of Supplier.

The significant suppliers of the Huanghe Institute Of Science And Technology B The Dream Continues Case Study Help 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 overall bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.

Competitors Analysis.

CMP operates in an extremely competitive market with the presence of a great deal of rivals. 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 Solution include;.

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

Chemical Market Press (CIP).

CIP acts as a threat 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 market share of CMP quickly in the existing market situation.

Posts and telecommunication Press (PTP).

It was also established in the same period as Huanghe Institute Of Science And Technology B The Dream Continues Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.

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

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.

Cons

• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose demand of its items in the market.

Recommendations

With the deep analysis of the internal and external environment of the business together with the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the declining industry growth. Intro of digital publishing might prove to be an immediate option with low amount of danger for the business. The company might likewise think about the growth program after the success of its digital publishing program.

Application

In order to present digital publishing in its item portfolio, the business must initially collects the information related to the customer need, the potential markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the development of the publishing industry is declining because 2008, showing a threat to the company's long term existence, however the circumstance can be managed by considering a development plan in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entryway in the new markets.

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