The High West Distillery 2 Case Study Solution and Analysis
Intro
The High West Distillery 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing info and communication services. Significant service sectors of the business include; books, regulars, consultancy and distribution. The business has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports etc. The High West Distillery 2 Case Study Analysis has ended up being a specialized information provider and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The High West Distillery 2 Case Study Solution has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several 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 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
The High West Distillery 2 Case Study Analysis has certain strengths that can be made use of to minimize the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The High West Distillery 2 Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position permits the company to think about numerous advancement chances without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of The High West Distillery 2 Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing since 2008, affecting The High West Distillery 2 Case Study Solution as well, however the development might be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP include;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually posed particular threats to The High West Distillery 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The High West Distillery 2 Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The business has a quite competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. The overall monetary performance of the business might be evaluated by utilizing the charts provided in the case Appendices. It might be examined from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of The High West Distillery 2 Case Study Solution is growing and the business is rather effective in attracting a a great deal of clients at a potential price.
In addition to it, the second chart which shows the annual growth in the The High West Distillery 2 Case Study Analysis overall assets, reveals that the business is rather effective in adding value to its possessions through its profits. The growth in properties reveals that the total worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the provided information could be the analysis regarding the distribution of overall incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting The High West Distillery 2 Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the The High West Distillery 2 Case Study Solution in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate 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. China's economic conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The High West Distillery 2 Case Study Solution includes the concerns of ecological neighborhoods 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 used while publishing should 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 initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute items for the released files is the documents provided in the virtual libraries on specific sites. The changing consumer choices towards digital learning increase the danger of alternative for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market 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 competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The High West Distillery 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider 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 buyers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The High West Distillery 2 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 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 existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as The High West Distillery 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an instant solution to prevent the declining market development. The company might also consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its item portfolio, the business should initially gathers the data connected to the customer need, the prospective markets, the federal government policies and the information connected to the rivals presented in the market. After that, the company ought to choose one potential sector for its preliminary offering. It should gather research that how it might separate its digital publishing from the existing competitors' products. The steps above the business should go for the initial offering. The company must go for the other markets if the initial offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term existence, however the scenario can be controlled by thinking about a development strategy in the future. The business might think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the brand-new markets.
