Students Helping Honduras 2 Case Study Solution and Analysis
Introduction
Students Helping Honduras 2 Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Students Helping Honduras 2 Case Study Solution has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised a number of concerns 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 made use of 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
Students Helping Honduras 2 Case Study Solution has particular strengths that can be used to reduce the hazards, overcome the weak point and obtain the opportunities. Strengths of CMP are given as follows;
• The long term experience of Students Helping Honduras 2 Case Study Help in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its risk and provide high worth to its customers.
• Strong monetary position permits the business to consider a number of development opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase restrictions for the business in implementing its advancement program. The weaknesses of Students Helping Honduras 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Students Helping Honduras 2 Case Study Analysis as well, however the growth could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition 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 using its large funds.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular hazards to Students Helping Honduras 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Students Helping Honduras 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the market along with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be evaluated from the Appendix III that the annual overall incomes of Students Helping Honduras 2 Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of CMP is growing and the company is quite efficient in bring in a large number of customers at a possible cost.
Together with it, the second chart which reveals the annual development in the Students Helping Honduras 2 Case Study Solution overall assets, reveals that the business is quite effective in adding value to its possessions through its revenues. The growth in possessions shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the company using the offered information might be the analysis relating to the circulation of total profits of the company. Huge part of the earnings 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 service sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the performance of the company and the recent 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 substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. Therefore, it might be said that the general political forces impacting Students Helping Honduras 2 Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Students Helping Honduras 2 Case Study Analysis in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general company at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Enhancement of science and technology along with the rise of digital publishing could lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Students Helping Honduras 2 Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the industry tends to attract new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Substitution.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the documents provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal 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, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Students Helping Honduras 2 Case Study Analysis consist of the suppliers of the paper for publishing 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.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Students Helping Honduras 2 Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger for CMP as it could 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 present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant solution to prevent the decreasing industry development. The company might likewise consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the information related to the consumer demand, the possible markets, the government regulations and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining considering that 2008, showing a threat to the business's long term existence, but the scenario can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.
