Huawei How Can We Lead The Way Case Study Solution and Analysis
Intro
Huawei How Can We Lead The Way Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Huawei How Can We Lead The Way Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market patterns and forces bring certain obstacles to the publishing industry in general and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The transformation of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities 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
Huawei How Can We Lead The Way Case Study Analysis has particular strengths that can be made use of to reduce the risks, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Huawei How Can We Lead The Way Case Study Analysis in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the business to think about a number of development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Huawei How Can We Lead The Way Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific growth plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Huawei How Can We Lead The Way Case Study Solution also, however the development could be restored by availing certain opportunities presented in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing market has postured certain dangers to Huawei How Can We Lead The Way Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Huawei How Can We Lead The Way Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of information, the financial ratios of CMP might not be computed. However, the general financial efficiency of the business could be examined by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Huawei How Can We Lead The Way Case Study Solution is growing and the company is rather effective in drawing in a large number of consumers at a prospective price.
Along with it, the second chart which shows the annual development in the Huawei How Can We Lead The Way Case Study Help total possessions, reveals that the business is rather effective in including value to its properties through its earnings. The growth in properties shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the distribution of overall revenues of the company. Major part of the revenues 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 organisation segments with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short 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 individuals 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 Party of China. Therefore, it might be stated that the overall political forces affecting Huawei How Can We Lead The Way Case Study Solution service are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Huawei How Can We Lead The Way Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate effect the need for the publishing market. In addition to it, the economic policies associated with the import of books affect the overall company at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Huawei How Can We Lead The Way Case Study Help consists of the concerns of environmental communities 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 ought to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Risk of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the digital libraries on particular websites. The changing customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Huawei How Can We Lead The Way Case Study Solution include the suppliers of the paper for publishing files. 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 Buyer.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Huawei How Can We Lead The Way Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it might 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 easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival 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 terms of business scale. It is also one of the prominent gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an immediate option to prevent the declining market development. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should first collects the information associated with the consumer demand, the possible markets, the government policies and the information connected to the rivals provided in the market. After that, the business ought to choose one prospective sector for its preliminary offering. It needs to collect research that how it might differentiate its digital publishing from the existing competitors' products. After all the steps above the business should choose the initial offering. If the preliminary offering shows a success, the business must choose the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, showing a threat to the business's long term presence, but the scenario can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
