Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution and Analysis
Intro
Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a big comprehensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Help in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous 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 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
Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Analysis has particular strengths that can be made use of to reduce the dangers, conquer the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its consumers.
• Strong monetary position permits the company to consider several development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase restraints for the business in executing its development program. The weak points of Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Analysis are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain growth plans to avoid its dependence over the Chinese markets to attain long term growth.
Opportunities
The development of the publishing industry is decreasing considering that 2008, impacting Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Analysis as well, but the development could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The business could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competition in the publishing industry has actually postured specific hazards to Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution due to the customer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong customer base by utilizing particular methods like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the yearly total incomes of Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of CMP is growing and the business is rather effective in drawing in a big number of customers at a potential cost.
In addition to it, the second graph which reveals the annual growth in the Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution overall possessions, shows that the company is quite effective in adding worth to its assets through its profits. The growth in possessions reveals that the total worth of the firm is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall profits of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation sectors with a prospective growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces impacting the efficiency of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Analysis service are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards checking out useful materials etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of customers of the Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution. However, the consumer preferences are moving towards digital publishing instead of the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading strategies and so on. Enhancement of science and innovation in addition to the increase of digital publishing could decrease the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Help includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing ought 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 controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model might be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the documents presented in the virtual libraries on specific websites. The altering consumer preferences towards digital learning increase the risk 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 Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution consist of the providers of the paper for releasing files. 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.
Negotiating power of buyer 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 rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence 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. Major rivals of Zhejiang Haili Electronic Technology Co Ltd Holip A2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in expansion.
• Threat 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 risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose need of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to avoid the declining industry development. Therefore, introduction of digital publishing could show to be an immediate service with low quantity of threat for the business. The company could also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business should first gathers the data related to the consumer need, the potential markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining since 2008, revealing a hazard to the company's long term presence, but the circumstance can be managed by thinking about an advancement strategy in the future. The business could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the new markets.
