Hurricane Island Outward Bound School 2 Case Study Solution and Analysis
Hurricane Island Outward Bound School 2 Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details service provider and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Although, Hurricane Island Outward Bound School 2 Case Study Help has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change 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 capabilities 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?
Hurricane Island Outward Bound School 2 Case Study Solution has specific strengths that can be made use of to lower the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Hurricane Island Outward Bound School 2 Case Study Help in the publishing market i.e. 60 years enables the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large item 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.
Together with the strengths, the business has certain weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Hurricane Island Outward Bound School 2 Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth strategies to avoid its reliance over the Chinese markets to accomplish long term development.
Although, the development of the publishing industry is decreasing because 2008, impacting Hurricane Island Outward Bound School 2 Case Study Help too, however the development might be revived by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has actually postured particular risks to Hurricane Island Outward Bound School 2 Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in decreasing market share of Hurricane Island Outward Bound School 2 Case Study Solution due to the customer 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 rivals can gain a strong customer base by utilizing specific strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the risk of losing the customer base.
The business has a quite competitive financial performance. Due to absence of data, the financial ratios of CMP could not be calculated. The general monetary efficiency of the company might be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the products of Hurricane Island Outward Bound School 2 Case Study Analysis is growing and the business is quite effective in bring in a large number of clients at a potential cost.
In addition to it, the 2nd graph which reveals the yearly growth in the Hurricane Island Outward Bound School 2 Case Study Solution overall properties, reveals that the company is quite efficient in adding worth to its properties through its revenues. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information might be the analysis relating to the circulation of total revenues of the business. Huge 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 company might move towards other business sections with a potential growth to attain its future development goal.
PESTEL analysis might be conducted to find out the different external forces affecting the performance of the business and the current patterns in the external environment of the company. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces impacting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Hurricane Island Outward Bound School 2 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine impact the need for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. Nevertheless, China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards reading helpful products etc. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Hurricane Island Outward Bound School 2 Case Study Solution. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Hurricane Island Outward Bound School 2 Case Study Analysis includes the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies 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 Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. However, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Hazard of Alternative.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative items for the published documents is the documents provided in the virtual libraries on particular sites. The altering consumer choices towards digital learning increase the risk of alternative for the industry.
Competitive competition in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Hurricane Island Outward Bound School 2 Case Study Help include the providers 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling 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 market saturation, the purchasers requires high quality files at competitive rates.
CMP runs in a highly competitive market with the presence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Hurricane Island Outward Bound School 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same period, CIP publishes similar kind of books. For a big period, CIP held the largest market share, and still ranks 3rd and 2nd in different market sections, with a major focus on instructional publications. CIP serves 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 could wean the marketplace share of Hurricane Island Outward Bound School 2 Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular gamers in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing market growth. Therefore, introduction of digital publishing could prove to be an instant option with low quantity of threat for the business. The business could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company must initially collects the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering shows a success, the company must go for the other markets. In this way the company would be able to execute its digital publishing program.
Although, the growth of the publishing industry is decreasing because 2008, showing a hazard to the company's long term existence, however the circumstance can be managed by thinking about a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.