Is Thailand Attractive For Hong Kong Organizations Case Study Solution and Analysis
Introduction
Is Thailand Attractive For Hong Kong Organizations Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering info, processing details and interaction services. Major company segments of the business include; books, periodicals, consultancy and circulation. The company has a vast item portfolio and its major products consist of books, periodicals, online media, exhibits, research study reports and so on. Is Thailand Attractive For Hong Kong Organizations Case Study Analysis has become a specialized information company and a big thorough Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Is Thailand Attractive For Hong Kong Organizations Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms 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 several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Is Thailand Attractive For Hong Kong Organizations Case Study Analysis has specific strengths that can be utilized to lower the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Is Thailand Attractive For Hong Kong Organizations Case Study Analysis in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position permits the company to consider numerous development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restraints for the company in implementing its advancement program. The weaknesses of Is Thailand Attractive For Hong Kong Organizations Case Study Help are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Is Thailand Attractive For Hong Kong Organizations Case Study Help as well, however the growth might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP consist of;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has posed specific hazards to Is Thailand Attractive For Hong Kong Organizations Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might cause declining market share of Is Thailand Attractive For Hong Kong Organizations Case Study Help due to the consumer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the hazard of losing the customer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. Nevertheless, the total monetary efficiency of the company might be evaluated by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the annual total profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Is Thailand Attractive For Hong Kong Organizations Case Study Help is growing and the company is rather efficient in attracting a large number of clients at a possible price.
In addition to it, the second chart which shows the yearly development in the Is Thailand Attractive For Hong Kong Organizations Case Study Help total properties, reveals that the business is quite effective in adding worth to its properties through its profits. The growth in assets shows that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered data could be the analysis relating to the circulation of overall earnings of the business. Major part of the incomes of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sectors with a potential growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the general political forces impacting CMP company are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Is Thailand Attractive For Hong Kong Organizations Case Study Analysis in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces combine effect the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total service at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading helpful products and so on. China has the highest population on the planet with a high population growth, revealing the increasing number of consumers of the Is Thailand Attractive For Hong Kong Organizations Case Study Solution. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Is Thailand Attractive For Hong Kong Organizations Case Study Solution consists of the concerns of environmental neighborhoods over the use 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 ought to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing market. However, the existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the documents presented in the digital libraries on certain sites. The changing consumer preferences towards digital learning increase the risk of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Is Thailand Attractive For Hong Kong Organizations Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Is Thailand Attractive For Hong Kong Organizations Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Is Thailand Attractive For Hong Kong Organizations Case Study Help and CIP. It is also one of the prominent gamers 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 Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
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 suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry growth. Intro of digital publishing could prove to be an immediate solution with low quantity of threat for the business. Nevertheless, the business could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the consumer need, the potential markets, the government regulations and the data related to the competitors presented in the market. If the preliminary 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 industry is declining because 2008, showing a risk to the business's long term existence, but the scenario can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
