The Huffington Post 2 Case Study Solution and Analysis
Intro
The Huffington Post 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering information, processing information and communication services. Major organisation sectors of the business consist of; books, regulars, consultancy and distribution. The business has a vast product portfolio and its significant products consist of books, periodicals, online media, exhibitions, research study reports etc. The Huffington Post 2 Case Study Help has actually ended up being a specialized info provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, The Huffington Post 2 Case Study Analysis has spent its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The change 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 circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized 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 Huffington Post 2 Case Study Solution has certain strengths that can be used to lower the threats, get rid of the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Huffington Post 2 Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position allows the company to think about numerous advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of The Huffington Post 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular expansion plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, impacting The Huffington Post 2 Case Study Help as well, however the development could be revived by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured certain dangers to The Huffington Post 2 Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to declining market share of The Huffington Post 2 Case Study Analysis due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market along with presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall incomes of The Huffington Post 2 Case Study Help throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a prospective price.
Along with it, the second chart which reveals the annual development in the The Huffington Post 2 Case Study Help total possessions, shows that the business is rather efficient in adding worth to its properties through its earnings. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company using the provided data might be the analysis regarding the distribution of total profits of the business. 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 company sectors with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces affecting the efficiency of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It might be stated that the overall political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful materials etc. China has the greatest population in the world with a high population growth, showing the increasing variety of consumers of the The Huffington Post 2 Case Study Analysis. The customer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting The Huffington Post 2 Case Study Solution includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing market China. A short analysis of the Porter's 5 Forces is given as follows;.
Risk of New Entrants.
Hazards 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 presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Danger of Substitution is high for the Chinese Publishing Market. The alternative products for the released documents is the documents presented in the virtual libraries on particular websites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the The Huffington Post 2 Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of The Huffington Post 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 2nd and 3rd in different market sections, with a major focus on educational publications. CIP acts as a threat 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 marketplace share of The Huffington Post 2 Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same duration as The Huffington Post 2 Case Study Analysis and CIP. It is likewise one of the popular players in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate service to avoid the declining industry growth. 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 ought to first collects the data related to the customer demand, the prospective markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company should 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 market is declining considering that 2008, showing a danger to the business's long term existence, but the scenario can be controlled by thinking about an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its advancement program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
