Manitoba Hydro Company Case Study Solution and Analysis
Intro
Manitoba Hydro Company Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing info and interaction services. Significant organisation sections of the business include; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Manitoba Hydro Company Case Study Analysis has become a specialized details company and a large extensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
Although, Manitoba Hydro Company Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These elements consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Manitoba Hydro Company Case Study Solution has certain strengths that can be used to decrease the threats, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Manitoba Hydro Company Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its clients.
• Strong monetary position enables the business to consider a number of development opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase constraints for the company in implementing its development program. The weaknesses of Manitoba Hydro Company Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the growth of the publishing market is declining because 2008, impacting Manitoba Hydro Company Case Study Help also, however the growth could be restored by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has posed certain risks to Manitoba Hydro Company Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Manitoba Hydro Company Case Study Help due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using particular methods like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the yearly total incomes of Manitoba Hydro Company Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the company is rather efficient in bring in a big number of customers at a prospective price.
Together with it, the second chart which reveals the annual development in the Manitoba Hydro Company Case Study Solution total assets, shows that the business is quite effective in adding worth to its properties through its incomes. The development in properties reveals that the total value of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis relating to the circulation of overall incomes of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out 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 offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be stated that the general political forces impacting Manitoba Hydro Company Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial 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 overall GDP growth of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and technology together with the rise of digital publishing could reduce the demand for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Manitoba Hydro Company Case Study Help includes the concerns of environmental neighborhoods 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 used while publishing should not be hazardous for the environment.
Legal.
Legal regulations 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 Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement products for the released files is the documents provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market 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. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Manitoba Hydro Company Case Study Analysis consist of the providers of the paper for releasing files. 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.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Manitoba Hydro Company Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Manitoba Hydro Company Case Study Analysis and CIP. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Intro of digital publishing might show to be an immediate option with low amount of threat for the business. Nevertheless, the company could also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must first gathers the information related to the customer demand, the potential markets, the federal government guidelines and the information related to the rivals presented 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 implement its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, showing a danger to the company's long term presence, but the situation can be controlled by considering a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entrance in the new markets.
