The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Solution and Analysis
Introduction
The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP supplies a number of services consisting of; gathering info, processing details and communication services. Significant business sections of the business include; books, periodicals, consultancy and distribution. The company has a large product portfolio and its major items include books, regulars, online media, exhibitions, research study reports and so on. The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis has ended up being a specialized info provider and a large detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Issues
Although, The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and CMP in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the business 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
The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Solution has particular strengths that can be utilized to decrease the dangers, conquer the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high value to its customers.
• Strong financial position permits the business to consider numerous development chances without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase constraints for the company in executing its advancement program. The weak points of The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing firm, the business 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 needs to propose specific expansion plans to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis as well, but the growth might be revived by availing certain opportunities provided in the market. The market opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro patterns in the market and increasing competition in the publishing industry has actually posed specific threats to The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry together with existence of high competitors increases the danger of losing the customer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. Nevertheless, the overall monetary performance of the company could be analyzed by using the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis is growing and the company is rather efficient in drawing in a large number of customers at a possible cost.
Together with it, the second chart which reveals the yearly development in the The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis total assets, reveals that the company is rather efficient in including worth to its assets through its incomes. The development in assets reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis concerning the distribution of total revenues of the business. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. For that reason, it could be stated that the general political forces affecting The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could lower the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Help consists of the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized 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 guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be utilized to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Replacement.
Risk of Substitution is high for the Chinese Publishing Industry. The substitute products for the released files is the files provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer 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 prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Analysis consist of;.
• 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 current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Hong Kong Blind Union A Small Self Help Ngo With Board Of Directors Actively Involved In Operation Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an instant solution to prevent the decreasing market development. The company might likewise consider the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the company should first gathers the information related to the customer demand, the potential markets, the government regulations and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing because 2008, showing a hazard to the company's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the new markets.
