Yung Kee A Family Feud Divides Hong Kong Case Study Solution and Analysis
Introduction
Yung Kee A Family Feud Divides Hong Kong Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; gathering details, processing details and interaction services. Significant organisation segments of the company include; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports and so on. Yung Kee A Family Feud Divides Hong Kong Case Study Analysis has ended up being a specialized details supplier and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific difficulties to the publishing market in general and Yung Kee A Family Feud Divides Hong Kong Case Study Solution in particular. These aspects consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be utilized 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
Yung Kee A Family Feud Divides Hong Kong Case Study Solution has specific strengths that can be utilized to decrease the risks, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Yung Kee A Family Feud Divides Hong Kong Case Study Solution in the publishing industry i.e. 60 years allows the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its risk and provide high worth to its consumers.
• Strong monetary position permits the business to think about numerous development chances without any fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restrictions for the company in implementing its advancement program. The weak points of Yung Kee A Family Feud Divides Hong Kong Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It must propose particular expansion strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, affecting Yung Kee A Family Feud Divides Hong Kong Case Study Analysis as well, but the development could be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing market has presented particular hazards to Yung Kee A Family Feud Divides Hong Kong Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Yung Kee A Family Feud Divides Hong Kong Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market together with existence of high competitors increases the risk of losing the consumer base.
Financial Analysis.
The business has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP could not be computed. The overall financial performance of the business could be analyzed by using the graphs provided in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Yung Kee A Family Feud Divides Hong Kong Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of customers at a possible cost.
In addition to it, the 2nd chart which reveals the yearly growth in the Yung Kee A Family Feud Divides Hong Kong Case Study Solution overall possessions, reveals that the company is quite efficient in including worth to its possessions through its incomes. The development in possessions shows that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the circulation 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 could move towards other service sectors with a potential development to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the different external forces affecting the performance of the company and the recent patterns 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 considerable impact on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact 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 must focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Yung Kee A Family Feud Divides Hong Kong Case Study Analysis consists of the issues of environmental neighborhoods over the usage 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 needs to not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into 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 Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible development in the industry tends to draw in brand-new entrants to the publishing market. The presence of extreme competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Danger of Replacement is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the digital libraries on particular websites. The altering customer preferences towards digital learning increase the danger of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Yung Kee A Family Feud Divides Hong Kong Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Yung Kee A Family Feud Divides Hong Kong Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in various market sections, with a significant focus on academic publications. CIP acts as a danger 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 Yung Kee A Family Feud Divides Hong Kong Case Study Solution easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Development 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: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing market growth. Therefore, intro of digital publishing might show to be an immediate service with low amount of danger for the business. Nevertheless, the business could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially collects the data connected to the customer demand, the possible markets, the government policies and the data associated with the competitors provided in the market. After that, the company needs to choose one prospective sector for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing competitors' products. The actions above the company ought to go for the preliminary offering. If the preliminary offering proves a success, the company must choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing because 2008, showing a threat to the business's long term existence, however the circumstance can be controlled by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the threat of failure for entrance in the new markets.
