The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution and Analysis
Introduction
The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution in particular. These elements include;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution has specific strengths that can be utilized to minimize the dangers, get rid of the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution in the publishing market i.e. 60 years allows the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position allows the business to consider several advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restraints for the business in executing its development program. The weak points of The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose specific growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis as well, however the development could be revived by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has posed specific risks to The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of new publishing firms in the market along with presence of high competitors increases the hazard of losing the consumer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP could not be determined. However, the total financial performance of the company might be examined by utilizing the charts given in the case Appendices. It might be analyzed from the Appendix III that the yearly overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis is growing and the business is quite efficient in bring in a large number of customers at a possible rate.
In addition to it, the second chart which reveals the annual growth in the The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis overall properties, shows that the business is quite efficient in adding value to its properties through its earnings. The development in possessions shows that the overall worth of the company is likewise increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the business using the offered data might be the analysis concerning the distribution of overall revenues of the company. Huge part of the profits of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business segments with a possible development to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the virtual libraries on specific websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry 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. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
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 marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive market 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 rivals of The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sections, with a major concentrate on academic publications. CIP functions as a danger 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 The Hong Kong Jockey Club Transforming Customer Experience Through Information Technology Case Study Analysis easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to service scale. It is likewise one of the prominent gamers in the publishing market with an annual total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the preferences are moving towards digital publishing and the company require an instant solution to prevent the declining industry growth. Therefore, intro of digital publishing could show to be an immediate service with low quantity of risk for the business. Nevertheless, the business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company should initially gathers the information related to the customer need, the prospective markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering shows a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, showing a danger to the business's long term presence, but the scenario can be controlled by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
