The Huffington Post Case Study Solution and Analysis
Intro
The Huffington Post Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing industry in general and The Huffington Post Case Study Analysis in particular. These aspects consist of;
• 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 innovation.
The transformation 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 strive for 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 Case Study Help has specific strengths that can be made use of to decrease the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Huffington Post Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its successful journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong monetary position enables the company to think about a number of development opportunities with no fear of raising fund externally.
Weak points
In addition to the strengths, the company has specific weak points which could increase restrictions for the business in executing its development program. The weak points of The Huffington Post Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting The Huffington Post Case Study Help too, however the growth might be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has positioned certain threats to The Huffington Post Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of The Huffington Post Case Study Help due to the consumer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. The overall financial performance of the business could be evaluated by using the graphs provided in the case Appendices. It could be evaluated from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of The Huffington Post Case Study Solution is growing and the company is quite effective in bring in a a great deal of clients at a potential rate.
Together with it, the 2nd chart which shows the yearly growth in the The Huffington Post Case Study Solution total assets, reveals that the company is rather efficient in adding worth to its possessions through its profits. The development in assets shows that the overall worth of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data could be the analysis regarding the circulation of total profits of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other business sections with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to find out the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces impacting CMP organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Huffington Post Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal policies 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 Ordinance 1997 requires the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance prohibits direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to draw in brand-new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Risk of Replacement is high for the Chinese Publishing Market. The substitute products for the published documents is the documents provided in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Huffington Post Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of large number of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Huffington Post Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the same period, CIP releases similar type of books. For a large time period, CIP held the largest market share, and still ranks 3rd and 2nd in different market segments, with a major concentrate on academic publications. CIP functions 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 might wean the market share of The Huffington Post Case Study Help easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same period as The Huffington Post Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the business require an immediate service to prevent the decreasing industry growth. The company might also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company ought to first gathers the information connected to the customer demand, the potential markets, the government regulations and the information associated with the competitors presented in the market. After that, the company needs to choose one prospective sector for its initial offering. It needs to collect research that how it could differentiate its digital publishing from the existing competitors' products. The actions above the business must go for the preliminary offering. If the initial offering shows a success, the company needs to opt 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 decreasing given that 2008, showing a danger to the company's long term presence, but the scenario can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.
