New Hampshire Project Case Study Solution and Analysis
Introduction
New Hampshire Project Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Problems
CMP has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and New Hampshire Project Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of questions 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 business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
New Hampshire Project Case Study Help has certain strengths that can be used to minimize the threats, overcome the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of New Hampshire Project Case Study Help in the publishing market i.e. 60 years allows the business to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high worth to its customers.
• Strong financial position enables the company to consider a number of development opportunities without any worry of raising fund externally.
Weak points
Along with the strengths, the company has particular weak points which might increase restrictions for the business in implementing its development program. The weak points of New Hampshire Project Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company 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 needs to propose particular growth strategies to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing since 2008, affecting New Hampshire Project Case Study Solution as well, however the growth could be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong customer recognition 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 vast financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has presented certain threats to New Hampshire Project Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of New Hampshire Project Case Study Solution due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific strategies like aggressive promotion, quality items, etc.
• Entrance of new publishing firms in the market in addition to presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total incomes of New Hampshire Project Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather effective in attracting a large number of customers at a possible rate.
Along with it, the 2nd chart which reveals the yearly development in the New Hampshire Project Case Study Solution overall properties, reveals that the business is rather efficient in adding value to its properties through its incomes. The growth in assets shows that the overall value of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data might be the analysis relating to the distribution of overall incomes of the company. Huge part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the numerous external forces impacting the efficiency of the business and the recent patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the New Hampshire Project Case Study Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the financial policies connected to the import of books affect the general organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting New Hampshire Project Case Study Solution consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Threat of Substitution is high for the Chinese Publishing Market. The alternative items for the released documents is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital learning increase the danger of alternative 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 likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the New Hampshire Project Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of New Hampshire Project Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as New Hampshire Project Case Study Solution and CIP. It is likewise one of the popular gamers in the publishing market with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
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 new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the declining industry growth. The company could also 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 needs to first collects the data related to the customer demand, the possible markets, the government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a danger to the business's long term existence, however the scenario can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the brand-new markets.
