Hungry Hogs The Hot Dogs From India Case Study Solution and Analysis
Introduction
Hungry Hogs The Hot Dogs From India Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting information, processing info and communication services. Major company segments of the company include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Hungry Hogs The Hot Dogs From India Case Study Help has become a specialized details company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
Although, Hungry Hogs The Hot Dogs From India Case Study Solution has actually invested its 60 years journey efficiently, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized 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
Hungry Hogs The Hot Dogs From India Case Study Help has certain strengths that can be utilized to reduce the risks, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Hungry Hogs The Hot Dogs From India Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its danger and offer high value to its consumers.
• Strong financial position permits the company to consider several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Hungry Hogs The Hot Dogs From India Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining since 2008, impacting Hungry Hogs The Hot Dogs From India Case Study Analysis as well, however the growth could be restored by availing certain chances presented in the market. The market chances for CMP consist of;
• The business might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured specific hazards to Hungry Hogs The Hot Dogs From India Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Hungry Hogs The Hot Dogs From India Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the market in addition to presence of high competitors increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP could not be determined. However, the general financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of Hungry Hogs The Hot Dogs From India Case Study Analysis is growing and the business is rather efficient in drawing in a a great deal of customers at a possible price.
Together with it, the second graph which reveals the annual development in the Hungry Hogs The Hot Dogs From India Case Study Analysis overall possessions, reveals that the company is rather efficient in adding value to its properties through its revenues. The growth in assets shows that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided data could be the analysis regarding the circulation of total earnings of the company. Huge 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 company segments with a prospective development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings 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.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful materials and so on. China has the greatest population in the world with a high population growth, showing the increasing number of consumers of the Hungry Hogs The Hot Dogs From India Case Study Solution. However, the customer choices are shifting towards digital publishing instead of the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering consumer choices.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing might decrease the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Hungry Hogs The Hot Dogs From India Case Study Analysis consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market 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 given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the documents presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the hazard of replacement 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 and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Hungry Hogs The Hot Dogs From India Case Study Solution 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Hungry Hogs The Hot Dogs From India Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
It was also established in the same period as Hungry Hogs The Hot Dogs From India Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an instant solution to prevent the declining market growth. Therefore, intro of digital publishing might prove to be an immediate option with low quantity of threat for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company needs to first collects the data related to the consumer need, the possible markets, the federal government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, showing a risk to the business's long term existence, but the circumstance can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entryway in the new markets.
