The Park Hotels Designing Experience 2 Case Study Solution and Analysis
Introduction
The Park Hotels Designing Experience 2 Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific challenges to the publishing industry in basic and The Park Hotels Designing Experience 2 Case Study Analysis in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
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 capabilities of the business could be made use of 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 Park Hotels Designing Experience 2 Case Study Help has particular strengths that can be made use of to lower the hazards, overcome the weak point and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Park Hotels Designing Experience 2 Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong monetary position enables the business to consider a number of advancement chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has particular weak points which might increase constraints for the company in implementing its advancement program. The weak points of The Park Hotels Designing Experience 2 Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular expansion strategies to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing industry is declining because 2008, impacting The Park Hotels Designing Experience 2 Case Study Help too, but the growth could be revived by availing particular opportunities provided in the market. The market chances for CMP include;
• The company could also introduce 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 lower its dependence over Chinese markets by utilizing its large funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually postured certain risks to The Park Hotels Designing Experience 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in declining market share of The Park Hotels Designing Experience 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competitors increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be determined. It could be examined from the Appendix III that the annual total earnings of The Park Hotels Designing Experience 2 Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the company is quite efficient in bring in a large number of consumers at a potential cost.
Together with it, the second chart which reveals the annual growth in the The Park Hotels Designing Experience 2 Case Study Help overall assets, reveals that the business is quite efficient in adding value to its possessions through its incomes. The development in assets shows that the total worth of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis concerning the distribution of overall earnings of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different 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 business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces affecting The Park Hotels Designing Experience 2 Case Study Analysis service are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could reduce the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting The Park Hotels Designing Experience 2 Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Threat of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents provided in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the risk of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Park Hotels Designing Experience 2 Case Study Solution include 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.
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 marketplace saturation, the purchasers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive market with the presence 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 rivals of The Park Hotels Designing Experience 2 Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the very same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in numerous market segments, with a significant focus on instructional publications. CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of The Park Hotels Designing Experience 2 Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same duration as The Park Hotels Designing Experience 2 Case Study Analysis and CIP. It is likewise one of the popular gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competitors 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.
Suggestions
As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the decreasing market development. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the customer need, the prospective markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering shows a success, the business must 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 decreasing considering that 2008, revealing a hazard to the business's long term existence, but the situation can be controlled by considering a development strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
