Humphrey Cecilia Video Case Study Solution and Analysis
Intro
Humphrey Cecilia Video Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big thorough Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and Humphrey Cecilia Video Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous 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 made use of 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
Humphrey Cecilia Video Case Study Analysis has particular strengths that can be utilized to minimize the hazards, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Humphrey Cecilia Video Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created 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 permits the company to think about a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has particular weaknesses which might increase restrictions for the business in executing its advancement program. The weaknesses of Humphrey Cecilia Video Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting Humphrey Cecilia Video Case Study Analysis as well, however the development might be restored by availing certain opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Humphrey Cecilia Video Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Humphrey Cecilia Video Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the industry along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual overall profits of Humphrey Cecilia Video Case Study Analysis during the period 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of CMP is growing and the business is rather effective in bring in a big number of clients at a possible cost.
Together with it, the 2nd chart which shows the annual growth in the Humphrey Cecilia Video Case Study Help total properties, shows that the company is quite efficient in including worth to its assets through its incomes. The growth in properties reveals that the overall worth of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business utilizing the provided data might be the analysis relating to the distribution of total incomes of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a prospective growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces affecting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact 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 guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces affecting Humphrey Cecilia Video Case Study Analysis organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
The customer choices 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 consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might lower the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Humphrey Cecilia Video Case Study Help consists of the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the documents presented in the digital libraries on certain sites. The altering customer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Humphrey Cecilia Video Case Study Analysis include the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Humphrey Cecilia Video Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Humphrey Cecilia Video Case Study Help and CIP. It is also one of the popular players in the publishing market with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the business require an immediate solution to prevent the declining industry growth. Therefore, introduction of digital publishing might prove to be an instant solution with low quantity of danger for the company. The company could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should first gathers the data related to the consumer demand, the prospective markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company must go for 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 existence, but the circumstance can be controlled by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entryway in the new markets.
